What is negative equity on a car and why wont dealerships take my2004 Mustang Gt when i owe 18,000 on it?

Answer 1

Negative equity means it is worth less than you owe on the car. Equity is how much the vehicle is worth beyond what the value of the vehicle is estimated to be. Let them repo the car, and take the fall. Go get another vehicle BEFORE it has a chance to go against your credit, and they come get it. It is so sad that car companies take advantage of people like this, but when you don't have any credit, they make things worse by selling you a car for way more than the actual value of the vehicle. It is aganist the law in some states to loan shark people like that. Were you charged a legal interest rate? One thing for sure is; you are now learning a big lesson from all of this, and how to get out of it won't be easy. Is 1800 what you owe or is that the pay off? Those are two different figures you know. I would demand to know the pay off on the car as of such an such date. They may be giving you the pay off if you made all the payments plus interest, and if the insurance was financed into the package too, its easy to see where the big pay off comes from. You need to go over your paperwork with a fine tooth comb, and find any charges that don't apply to the pay off. If it was me, I would ask them where they want the car delivered to, and you will see them in court. They may make you a better deal on the vehicle because they don't want it back, they just want to keep you paying more than you can afford, and if you had an attorney and filed a suit aganist them for something, then you may wiggle out of it. Who knows? I have seen stranger things.

Answer 2

There are some dealerships that recognize that a undeniable phase of the inhabitants is credit challenged and make the attempt to entice employer via offering subprime loans to those human beings. different dealerships probably do not want the priority, extremely a extreme-end broking like Lexus. basically about all and sundry with awful credit can detect a private loan in the event that they provide the impact of being for one. even inspite of the shown fact that, they gets that own loan at a lots larger interest value and pay lots extra for the motor vehicle interior the long-term.

Answer 3

It means that you owe more than it's worth. If you absolutely need to get out of owning the car, some dealers will let you buy and new vehicle, paying off your trade. Be warned, however, that they will give you only what the vehicle is worth and add the remainder into your loan amount. It's not something I recommend but it can be done. Visit kbb.com for blue book values.

Answer 4

You have a problem. A quick check on Edmunds shows your car's trade-in value is only $12,400. Selling it yourself will only get you about $14,000.
If you want to protect your credit, you would need to sell this car yourself and pay the difference to your creditor.
As noted, your alternative is repossession; but I sure would not recommend you go out and get another note. If you were hoodwinked the first time for this much, your credit must be in the toilet.
My best suggestion is for you to get a $2000 junker and live a pay-as-you-go lifestyle while you build (or rebuild) your credit over the next several years.

Answer 5

you owe more on the car than it is worth on the open market. they wont take it because to get the price they paid to you for it they would have to sell the car for over 18,000 and well nobody would buy it and they would lose moeny big time.

Answer 6

to sum it up you are upside down... or you owe more than the car is worth... generally when you finance a car you dont actually start paying for the car until after 3-4 years... before that you are just paying on the interest. Sucks dont it

Answer 7

Because you owe way more than the car is actually worth. No one will buy that car for $18,000. Sorry your stuck with it. That will teach you to buy a crappy American Car again.

Answer 8

That's the same as being " upside down" in a car....or you owe more or almost as much as the car is worth or near that price.

Answer 9

have some friends gu tit for parts,keep the money and dump the rest of it in a crappy part of town. Call the cops report it as stolen, then collect the insurance money on it!!!! Don't laugh, it's what everybody seems to do. why do you think insurance rates are so high!!!!

Answer 10

since you are upside down,take it to a toyota dealer, trade it in,roll your balance into your new car, atleast you will be in a car that has a nice resale value in five years from now.