What's my best option for financing with an existing loan?

Question

So I bought a used Jeep from a WI dealership in December 2005. At that time my credit was still iffy, as I had filed bankruptcy 2 years prior. But nonetheless I got the loan (also traded in a car) but with higher interest. Almost right after I got it, I realized how stupid my decision was mainly because of the fuel cost. But I kinda figured that was too bad, done deal.

So now I am thinking again about how I want/need a smaller car. I owe about $7000 on the car, but of course it's only wirth about $6000 max. I know I could sell if privately, but I don't know how to do that considering I don't technically own the title.

I guess I'm just looking for some advice on this. I could go to another dealership and use the existing car as a trade in, but I assume the payments would be outrageous. Although my credit has definately improved. Other than just paying the car off and then trading it in, is there any better way to get out of this loan and into a car that better suits me?

Answer 1

You can go to a dealership in your area and talk to the sales manager. Tell him what you want to do. See if he has a car that he can show you that will hold a higher value than he is selling it for. Then the bank will loan you enough money in that car to payoff your Jeep.

Mostly talk to a manager and tell him up front what you are trying to do. They will help you if they can. Just make sure they do not sell you just a car but, something that will help your credit out so in a few years if you want to trade again, your new car will not have a lot of negative equity.

Hope this helps, Good Luck!

Answer 2

You're what they call upside down on your loan. You owe more than the car is worth. Your options are; keep the vehicle until you owe less than it's worth and then trade it, or just keep the vehicle, unless you can afford to trade it and add the balance to the new vehicle you buy.