I owe 10K on my 2003 Sentra...?

Question

That's really only worth 7.4K. I want to trade it in for something better. No matter which new car I pick, the price is gonna set me back. But won't I be in a better position with a nicer vehicle?

Answer 1

At least you know the car isn't worth $10K, that's a start. You could try to sell the Sentra yourself, that would get you closer to $7400. In reality it's a $6000 car on a good day. Of course this depends on mileage, options and condition. It could be less.

Prices guides are just that, a guide. A good gauge of a car's true value is Ebay. Ebay is the used car market. Looking at Ebay, 2003 Sentras are selling for less than $6000. Even the Sentra SE-R, (one of the sporty Sentras) aren't selling for anywhere near $7500. And 2004 and 2005 Sentras are barely bringing $7500.

If you are curious about trade in value, go to a dealership find out what they would offer you toward a new car.

But trading it in now would only get you into a deeper hole.

Here's what happens if you trade in with your current situation:

Lets say dealer offers you a very realistic $4000 trade in value for your car. But you still owe $10,000. He would have to take the $6000 you owe and apply it against the new car.

Say you were looking at a new car for $15,000. With the $6000 in negative equity from your Sentra added in, that $15K car becomes a $21,000 car. And in many cases a bank won't loan out that much negative equity, but lets say they do. The instant you drive that brand new $15,000 car off the lot, it becomes a used car and looses 30% of it's value. So now you owe $21,000 on a car that is worth $10,500. That makes your current situation look great!

A good rule of thumb is for every $1000 you borrow equals about $25 per month on a 5 year loan. So bringing $6000 in from your Sentra to the new car will add $150 per month to the payment. The average payment on a $15,000 car is $375. But you would pay $525 because you are paying for a car you don't own anymore.

Can you make double payments? Or maybe hold on to it for another year. If the Sentra is running well can bare with it for a little longer?

Answer 2

Not really..You figure whatever you currently owe (payoff) is going to be tacked onto whatever you purchase. So say you buy a $20,000 car, plus the $10,000 you owe...you now have a car worth $18,000 (depreciates the minute you pull off of the lot) that you owe $30,000 (plus...tax, title and dealer fees) on and in a few years you will be in the same if not worse position you are in now.
The only thing is you feel better because you have a new set of wheels.....for now.

3 options...

1) Sell your car outright, get what you can. Is it possible to clear what your payoff is through the sale of the car?

2) Refinance for a lower payment. What are you currently paying a month? You take that 10,000 over 3 years it is about $280.00 a month (+/-)

3) Keep it...unless it is a real piece of garbage, it is better to sink a few hundred into repairs than taking a loss on a trade in...Figure that $30,000 car is gonna be $500-$600 a month over the next 5-7 years. 2 of those payments would buy a heck of a lot of repairs....even an engine can be had for a couple of thousand...

Answer 3

No, you're upside down. Trading wouldn't be a good idea until you get your payoff down. If you trade for a nicer car, the dealer is not only going to take your for a ride like he obviously did with this car, but he'll also make you pay the difference of your payoff and the vehicle value. PS: A dealer will not give you nearly what that car is worth. Asking prices on craigslist are no reference. I work in auto financing and if I had to guess, I'd say you'd get $4,500 on a trade for that Sentra.

Answer 4

No, your better off, paying on this vehicle and getting it paid for or close to, before moving forward with another car purchase. You're upside down(owing more than the car's value)you need to remedy that situation,otherwise, by trading in for another, the next car is upside down, and the next, and the next. If you were looking at paying a higher payment, apply that money to the current loan, you'll be out from under, in no time. Good luck.

Answer 5

It's not time to buy a new car. Cars are notoriously bad investments. They lose values faster than you can payoff many loans. You are upside down on this loan. If you roll this debt into another car without paying it off, you will eventually be more upside down on your next car. This is very bad and can only lead to more and more debt. The best thing to do is to wait until you either pay off this car or get out of a reverse amortization. Then worry about your next car.

Answer 6

a Nissan sentra 2003 model can be sold for about 45000. yes another car is going to sit you back a few. if you really want a nicer car you must go for it. if you do finance... try and give more than 10 percent on the car. for each 5000 added to the deposit, your bank premium will come done

Answer 7

Car payments are for suckers. Keep the Sentra, pay it off. Pay it off as soon as possible. When it is paid off, drive until it dies a slow painful death in the middle of the desert. Then, buy a good used car. Then pay it off....