Can I trade in my car for a cheaper one???

Question

Here's the deal. I financed a 2004 Lincoln Aviator last October. I still have the vehicle, but I'm having difficulty making the monthly payments. The payments are really high. The car was around 21,000 and the payments came out to be 561.00 a month. I was fine making the payments every month, but now I have a house mortgage. I would've never gotten this vehicleif I knew I was going to be paying a mortgage. I'm only 21 years old and I got the vehicle after I graduated. I really think I made a idiotic move and was way in over my head. My dad moved to Laos and me and my brother ahad no choice but to take over the house payments. So now I'm stuck with this huge car payment and mortgage. The car I'm trying to trade in for is alot cheaper then what I paid. It's 14,000 for the car I want, which is a VW Jetta. It's also an 04 but has higher miles. I just need to know how the process works in trading in a car, such as mine and if I have to pay anything to do so. Please help.

I also could careless if I have to start all over and what not. I rather have a car with better gas milege, even though the winters will suck. Is there anything I need to worry about or know before I try to get this done???

Lets say I DO sell it to someone. Won't I still owe the financial institution money if I sell it for what ever KBB value is??? I beleive on my overview of my vehicle's finance info it said how much I would end up paying TOTAL including interest and it was around 35,000 dollars I believe. Lets jsut say I sold the Lincoln for 15,000, wouldn't I owe the dealership or my finanical institution 20,000 dollars??? I'm really confused guys/gals. Please help me.

Answer 1

Hi,anything is possible in trading vehicles but you may already be a bit upside down in the car loan, according to you payoff amount and the value of the vehicle. first thing you need to do is find the book value on the lincoln and the pay off amount. in order to get the value visit. www.kbb.com(kellys blue book) and fill out the informtaion u know about the vehicle u have. such as year,model, mileage, etc. then compare . even if u r a bit upside down a a fair deal can still be made personally i would stay away from Volks wagon Jetta good looking cars and some love them but they can be very very expensive to drive, cant go to walmart and buy castrol motor oil in order to change the oil. it must be Volkswagion oil or it will not run. they add a special additive nothing any better but the computer system recognizes it and else wise it want run. that goes with everything.also it may not be best to go with a 2004 model i would suggest getting something a bit newer. and it can still be done with lower payments, go for an additinal yr 72 mnths instead of 60 and so on. this can help get your monthly payment so u can handle it better. but as long as your credit is good you can get out of the lincoln and into a less expensive car and easier on gas. Trust me i deal with trade ins very regualr i Just traded out of a 2007 camry , and into a 2007 Toyota prius and came out good. just have to know what u r looking at know what u r willing to pay etc. butb if ur gonna be making payments consider something newer or new. get warranty etc.. good lk and i hope this helps .may i add you seem smart and trying to keep thinsg affordable keep your credit good it is important in in todays life.

Answer 2

If in excellent condition and depending upon mileage, the Kelley Blue Book value on your auto is about $21,000 for a private party sale or $17,000 on a trade in. Clearly it would be well worth the effort to try to sell the Aviator yourself to another individual. Do it through a local used car selling publication, like Deals on Wheels, or perhaps on a Craig's List ad. Otherwise, you're going to have to come up with cash to cover the $4,000 differential plus your down payment on the Jetta, or roll the differential into the price paid for the Jetta (and the lender may not care to finance $18,000 for a 3 year old Jetta).

Meanwhile, if you're REALLY in a bind and only after checking with your Dad first, you could explain your situation to the mortgage lender. Perhaps they would be willing to waive the mortgage payment for a month or two and just tack those payments onto the end of the loan. Or perhaps they would accept interest only for a month or two and collect the principal later. They may say "no" but what does it cost to ask? Again, I would not contact your Dad's mortgage lender without his knowledge and consent.

Good luck working it out. And "thumbs up" for recognizing that you may have made a mistake and trying to make it right appropriately before it gets any worse. Good to see that.

Answer 3

Why are you financing used cars over $10K anyway?

Get your self a good quality used car for CASH. Find one for $4K or $5K.

As far as trading, DON'T trade your car in and roll over the difference. SELL your car outright. BAsed on the fact that you paid $21K for a used vehicle, you will probably be upside down and will have to come up with the difference. If you sell it for $15,000 and the payoff is $19,000 you will have to come up with the extra $4,000.

Answer 4

Wow! thanks! I was wondering the same question the other day