We are trying to get a new 20,000 dollar car, however the car we have we owe 15,700, and the dealership of course dont want to give us what it is worth, so we are unable to get the new car, any suggestions
2007-05-28 12:33:23 · 7 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
Roll the additional loan value into the new car if you really want it that much. We had to do that on a car that we really needed to get rid of, as much as we hated to do that.
2007-05-28 12:36:45 · answer #1 · answered by Anonymous · 0⤊ 0⤋
There are several possibilities for you depending on your inclination, patience, and of course the value to payoff difference on your vehicle.
Suggestions (you may already be ahead of me here but ...)
(1) Book your car thru www.nada.com or www.kbb.com for three values (a) private party value-you sell it, (b) trade-in value-dealer value, (c) dealer retail-what the dealer will ask for it.
(2) Call for your payoff. Obtain the current payoff and one 30 days away.
(3) Compare the 3 book values with the payoff amount and determine where you are at with respect to the difference.
(4) Once you know the dollars you will have a clearer picture as to your options. You will either have a defecit, equity, or be even.
Option a-trade with a dealer and have the difference packed into your new loan (not the best option).
Option b-trade with a dealer and LEASE your new vehicle, packing the defecit inti the lease (a little better option). Option c-sell your vehicle and ask dealer retail for it, you may just get the money. I've owned over 100 vehicles and sold all but a few of them priced at dealer retail.
You might also look at vehicle loans online-there are some good possibilities there. Consider a credit union or personal bank loan (even if you end up trading your vehicle). And certainly you could take out a second on your home.
The most important aspect to consider is WHAT IT WILL COST to trade. Unless you have an absolute NEED to trade, you may want to reconsider. The truth is you could cost yourselves thousands of dollars to trade and not improve your present situation. And one final thought-shop several dealerships, there are no hard rules for deal-making in the retail auto business, there are as many possibilities as there are dealerships.
Be prepared to not get a deal, that's a good thing in itself as the experts are telling you it is not currently feasible to trade. If you want all the information you need to make a car deal buy my #1 best selling eWorkBook at www.thebestdealofyourlife.com. Hope this helps, and be patient-it's your money and your future-protect it.
bestofthedaytoyou, Chuck Norlin
2007-05-28 20:06:09 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Trading in a car with negative equity is a bad idea in two ways:
1) The negative balance is rolled into your new loan, and combined with the immediate depreciation of a newly purchased car, you are now even more "upside down" in your loan than before.
2) Your loan will likely have a higher interest rate than before because you are borrowing more than the car is worth and hence it's rated as a riskier loan, with a corresponding increase in interest.
If you absolutely must get a different car, trade in for something of lesser value. Anything more expensive is just going to dig you deeper into debt.
2007-05-28 19:58:51 · answer #3 · answered by nevergonnaletyoudown 4 · 0⤊ 0⤋
I would not do this. What you are doing is basically building a tower of debt. You should be building wealth. A car is a terrible investment. They decrease in value so much and so quickly, that you need to put money down in order to avoid negative equity. If you need to finace 100% of a car, it's not time to buy.
If you really really want to do this, you best bet is to advertise the car and sell it privately. You may need to make up some cash if you are very far upside down.
2007-05-28 19:42:49 · answer #4 · answered by Jay P 7 · 1⤊ 0⤋
Well this isnt a smart idea. This is how people get burried into a car. No positive equity. If you rollover the negative balance then your even worse off with the new car. Keep the one you have, take care of it and then when you can afford to make that purchase, go ahead and do it...
2007-05-28 19:39:27 · answer #5 · answered by Christian 7 · 1⤊ 0⤋
UGH! Don't do a roll over! Not for 1,000's of dollars! You will just get buried in the new car and have an even worse situation when you want to sell the new car.
2007-05-29 01:43:29 · answer #6 · answered by cc_det 1 · 0⤊ 0⤋
your best bet is to pick a car that has a high rebate...usually GM has the best rebates...and that should help cover if not most , some of the negative equity...I know cause i was in that spot last year..
2007-05-28 19:46:55 · answer #7 · answered by mamas1502 2 · 0⤊ 1⤋