I have a Honda that I need to trade which is worth about 18k and I owe 23k. Im upside down because my precious trade which I want a cheaper car for about 7-8k. I know I cant finance more than 120% of the value of the next car I buy, but has anyone ever downgrade in cars from a 20k car to a 8k car? I need lower monthly payments and I know I will be taking a hit on a trade value but its worth a lower payment. Any ideas, anybody ever sell their new car for a used? Thanks.
2007-01-26 06:39:46 · 3 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
during the trade-in deal you have to take one step at a time. Selling them the current vehicle is #1. If you're upside down on the loan, you need to pony-up the difference. THEN you can take out the cheaper car with a down payment or finance it at 100% if your credit allows it.
It's not that easy, bub!
2007-01-26 06:47:01 · answer #1 · answered by rob1963man 5 · 0⤊ 0⤋
Yes, if you have good credit it can be done. Be sure to buy gap insurance since you will owe more than the value of the car. You would be better off selling the car and buying a cheap used car.
2007-01-26 06:48:24 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Banks will finance up to 150% of the value of the car if you have good credit. Any difference has to come out of your pocket as money down. And yes, you need gap insurance.
2007-01-26 12:13:40 · answer #3 · answered by TONYA 2 · 0⤊ 0⤋