2007-07-26 07:01:37 · 8 answers · asked by Reddgirl82 1 in Cars & Transportation ➔ Buying & Selling
If you owe more than the value of the vehicle (what is commonly called being upside down) then you would need to come up with the difference between the payoff on the loan, and the proceeds of the sale.
The payoff is what you would have to pay today to pay off the loan. It should be less than the total of payments left.
For example if you owe $10,000.00 on your car, and the car is worth $8,000.00, you would have to pay the additional $2000.00 in cash. If the car is financed by your bank, and you have a good payment history, they may be willing to convert the balance to a personal loan and release the lien, but most likely they will not!
You can try to sell the car yourself for the amount you owe (a dealer will only pay wholesale, you can get closer to retail selling the car yourself). You can pay the difference. You can keep the car, and continue to pay on it until you get to a point where it is worth more than you owe!
Good Luck
2007-07-26 07:13:21 · answer #1 · answered by fire4511 7 · 2⤊ 1⤋
They have a slang term for this: "in the bucket". It means you have negative equity on your car, you owe more than the car is worth. You have to decide how badly you want to sell the car. Is it more important to get rid of it and take the loss? Or should you keep it and continue paying payments. Your decision. Have you tried to sell it private party? Often you can get more than the dealer will give you.
Look around and see what the demand is for your car. If it is an in demand car you can probably quickly sell it. I recently traded in my old car and I knew it was going to be hard to sell it as it is not a popular car so I took the money the dealer was willing to give me to save the hassle of trying to sell an unpopular car.
2007-07-26 07:09:03 · answer #2 · answered by K R 4 · 2⤊ 2⤋
The term is actually called "upside down". The dealer will roll the negative equity into the new loan (depending on your credit worthiness).
Try to sell your car. I mean, REALLY try to sell your car. Dont just put a sign on it and hope someone see's it. Post it on craigslist.org or autotrader.com or anything. Even put it up for sale in the print ads in the paper. If you can sell it for what you owe, or close enough to it, you are better off.
But, if you dont have the time or want the hassle of trying to sell your car yourself, maybe look into a consignment lot, or bite the bullet and trade it in.
2007-07-26 07:14:35 · answer #3 · answered by mac150 5 · 0⤊ 2⤋
lets just say u owe 2000 on your car the dealer only gives u a 1000 he can add that to the cost of the car u r buying . if u owe 2000 on your car an its only worth 1500 u are upside down that's what its called . You might have to put a bigger down payment on the one u r trying to buy.You could also sell it out right but you will have to pay it off before u can get the title an transfer it to the new buyer .
You just have to look at all your options an follow up on the best one.
I hope this helps you an good luck
2007-07-26 07:13:49 · answer #4 · answered by nikipoo 4 · 0⤊ 4⤋
Run an ad for someone to take over payments, but be careful if they don't make the payments the debt reverts to you. Also you can request a payoff amount from the lender. It's often considerably less than than the total amount of payments left
2007-07-26 07:11:06 · answer #5 · answered by hwhummer42 1 · 0⤊ 4⤋
keep the car or try to sell it to a private buyer for what you want for it, but you will have a hard time seling it that way unless someone really wants your car...
2007-07-26 07:08:12 · answer #6 · answered by Camaro355Z/28 3 · 1⤊ 1⤋
dont trade... say you want to sell it. then after you get that done. be like i want to look at cars. you will get way more money for it.
2007-07-26 07:07:56 · answer #7 · answered by yarrrr... 2 · 0⤊ 2⤋
Pay it off before you go visiting another dealer.
2007-07-26 09:04:08 · answer #8 · answered by Scott H 7 · 1⤊ 2⤋