how to reduce neg equity on vecicle?

Question

I bought a vehicle and rolled over about 4500 neg equity from another vehicle. we bought our vehicle in march we now have about 4900 neg equity how do I reduce this, I would also like to get a lower interest rate our is about 9% but no one will refinance with the neg.

re phrase- I bought a newer vehicle in march and traded my previous one in thats the one with the neg equity I had had it for over 3 yr and bought new for the warranty. we apply 200 extra a mth to the payment. I was just wondering if this will help in the long run, its not like I buy a new vehicle every yr. and I also put $2000 down we just have alot of appt and surgery so my milage was really high.. so had alot of neg.

Just wanted to add I drive a mini van not a sports car lol

Answer 1

Sorry, but the only way to reduce the negative is to pay it down. Negative equity in a vehicle is a vicious circle and I saw it everyday when I was selling cars. Your rate isn't really all that bad, standard rate for new cars right now is around 7 to 8 so I wouldn't worry too much about it. A credit union might do a little better, keep an eye out for sales. You'll still most likely need to throw some cash down to get it refinanced. Hopefully you purchased gap insurance when you bought the car.

Answer 2

You're not. Unless you put a lot of money down, nearly every vehicle purchase results in a negative equity situation. This is because a new vehicle can lose up to 20% of it's value as soon as it's driven off the lot. Now on top of the inherent negative equity, you compounded the situation by adding additional negative equity to the equation. The only way to reduce it is to pay additional money with each regular payment to reduce the loan pronciple. Refinancing isn't going to help you. You should have considered this before rolling your negative equity into the loan.

Answer 3

They only way is to pay extra on the car or come up with the cash to drop the negative equity. This is what happens when you buy a car with no down or trade in a vehicle

Answer 4

If you owe more on a car then it's worth you have no business trading it in.

That's all there is to it.

You'll just have to pay it off and stop going out and changing vehicle so often (if you have a reliable car you should be able to expect to keep it for a decade or at least a hundred thousand kilometres and very few people do that in a few years).

Also if you're driving more than average your vehicle will deprecate faster than average.

Answer 5

sellers will inform you they're going to do it for you regardless of the undeniable fact that it quantities to putting what you owe as we talk motor vehicle on precise of the hot one. somewhat you screwed your self with a loan you're able to no longer have adequate money. extra effective get some financial counseling and hit upon a thank you to maintain paying. at last, the fairness will turn around as you shut to the payoff date. Sorry.

Answer 6

Try to pay as much extra to your car payment as you can afford. Try to save money somewhere else in your life to compensate for this. Live within your means.
Good Luck