I have owned my current vehicle for 10 months. I desperatley want to trade it in for a new vehicle. However, trading it in would mean adding 6k of negative equity. This makes the new vehicles price much higher than it is worth and requiring $1800 down. However, if I do not trade in my vehicle, my payments would be lower and I would only need $500 down. Yes I know this would be horrible to have on my record. However, I actually had a repo 3 years ago (and was still able to finance a vehicle). Not to mention by keeping this newer vehicle and making all successful payments it should prove that I was responsible.
2007-05-25 11:14:16 · 10 answers · asked by cjsimmons269 1 in Business & Finance ➔ Personal Finance
If they repossess the car, you still owe the difference after the sell it cheap and deduct what they paid the repo man. Sell the car yourself and finance whatever is left on your loan. If the dealer will give you $6,000 less than you owe, an individual will probably give you about $4,000 less than you owe. Your options are: Private sale: owe about $4,000, Trade: own about $6,000, Repo: owe about $10,000.
2007-05-25 13:03:57 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
Which ever way you go will be financial suicide! The fact that you are entertaining any of these options based on just WANTING a different new car after only 10 months is absolutely crazy. But since you ask the question, NO definitely don't let it get repoed I am actually surprised you even ask the questioned after getting a car repoed 3 years ago. Didn't you have to pay off what your other car didn't bring at auction? I'm sure you got a real good interest rate on the car you have had for the last 10 months( its probably in the double digits right?). If you are dead set on buying the new car, and I think you are, go to kbb.com and see what it would bring "private sale" then sell it and finance the difference, by the time you get done financing the difference, financing the new car, registration,ins.,title fees and your down payment you will probably wished that you kept the first car. Based on the info you provided its very unlikely you will be able to afford the new one either. The key word in your question was" WANT " you need to control your wants and work more on your needs or you will continuously be in the position you are in now and not be able to get ahead. Sorry to be so blunt but you probably were never told "NO" before. I hope this helped, whether it be you or someone else ready to do the same thing and think its ok.
2007-05-25 13:08:43 · answer #2 · answered by Mr. just be happy 1 · 0⤊ 0⤋
I just traded in my truck for a different vehicle. I thought I would be 4 to five thousand in negative equity, but my dealer was able to get a "dealer payoff:" It is lower than your payoff, and even lower if they pay it off in three days instead of the usual ten. Ask your dealer about this. If he says it's not true- he is full of it- buy somewhere else. Why don't you pay a hundred or so extra on your vehicle for a few months (be sure to write on the check the extra amount is to be applied to the principle, not interest). Doing that will make a huge difference. I only ended up being $2000 upside down in my vehicle, though.
2007-05-25 11:50:30 · answer #3 · answered by Jeni 2 · 0⤊ 1⤋
If you have your car repoed you still owe what they don't get for it at auction. So if you owe $10,000 and they only get $6,000 you will still owe $4000 regardless of the fact you don't own the car anymore. Furthermore you are not going to get nearly as much for your car at a repo auction than from a dealership. You should try to dicker with the dealer and see if you can get them to give you more for the car on trade. You are likely to owe more than if you just took the negative equity hit that the is willing to charge you.
2007-05-25 11:22:38 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Sell the vehicle private party. You'll get more for it. Then pay off the debt and buy your new car. BAD credit is hard to come back from. You waste a TON of money in high interest rates and deposits.
2007-05-25 11:25:30 · answer #5 · answered by Kathy H 3 · 1⤊ 0⤋
What about selling the vehicle which means buying it out.....May not be a problem if you get your newer vehicle from same company.
See if that would be a viable option with the leasing company.
2007-05-25 11:18:54 · answer #6 · answered by smiling_freds_biz_info 6 · 0⤊ 0⤋
You don't want ANY negative blemish on your personal CREDIT BUREAU REPORT so NO don't just give up your vehicle and have it repo'd.
Work with the Lender if you are having troubles or refinance the vehicle if possible?
Negotiate!
The Bank does NOT want the Car back.
Take fiancial RESPONSIBILITY and work with the lender to preserve your good CREDIT.
GOOD LUCK! :-)
2007-05-25 11:18:54 · answer #7 · answered by JEDI MASTER YODA 4 · 0⤊ 0⤋
The miracle you are waiting for is for some nut to steal your car.
Then you won't have a repo and you won't have the car.
But to suggest that would be wrong..
2007-05-25 13:05:53 · answer #8 · answered by Robert 2 · 0⤊ 0⤋
yes
2007-05-25 11:17:19 · answer #9 · answered by q6656303 6 · 0⤊ 2⤋
Are you crazy??
2007-05-25 11:23:56 · answer #10 · answered by evill_debbie 1 · 0⤊ 0⤋