I really need some help here. My husband and I went and bought a car. Now, they have dropped a lot of his hours and we can't afford the car on our income. I do not want them to repo the car. I do not want to mess up my credit. I was wondering if I took the car to a car dealer and traded it in for a cheaper car, would they pay off my old balance and just charge me for the cheaper car? Please help me. If anyone knows anything about this or something else that I can do please let me know.
Thank you in advance?
2007-08-21 17:32:59 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
How much do you think that they would add on if I traded it in for a cheaper car? I just bought the car last month. I have put about 2000 miles on it.
We are both looking for second jobs but the area that we live in is about in possible to find anything. Plus I am going to college on line. I appreciate everyone giving me advice. Thank you so much.
Maybe some more information would help. The car is a 2006 grandprix. I bought it for about $15,000.00 tags, title, and taxes. The car is in excellent shape. I wonder what a dealer would give me for trade in?
2007-08-21 19:05:54 · update #1
Okay, as hard as it might be to believe, the dealership is NOT your friend. They will be happy to pay off your old car note if you have a desirable trade, but any deficient balance (amount you owe on the car minus the trade in value), will be rolled into your new deal. If you bought your current car new, this could add up to some serious money.
You might try selling your car outright in a private sale, which would bring you a higher price than trading it in. You could also try refinancing through a local credit union (if you're a member), where you should get a reduced rate compared to bank or dealership financing.
If you purchased any extended warranties or credit life, you could cancel those and get the money back as that might help tide you over until your husband's hours pick back up.
If you're looking at getting a different car or trading your current car in, do NOT let your payments slip. Most dealerships and financing sources use "auto-enhanced" scoring from the bureaus which means your auto loan history has a greater weight in your credit score.
2007-08-21 17:47:00 · answer #1 · answered by cincinnati65 2 · 0⤊ 0⤋
That could work, but the problem is the negative equity, ie they pay you less than the loan balance on your car.
You bought a car 1 year ago for 15,000, owe 14,000, dealer would offer you 10,000 on a trade.
So if you buy a 5,000 car your loan would be 9,000. Some lenders will not take a deal that has a high loan to value, or you get a very high interest rate.
I would say do whatever you have to, cancel cell phones, cable etc, get part time jobs. Pay down the loan to below the value of the car, then sell it.
2007-08-21 17:49:42 · answer #2 · answered by Gatsby216 7 · 0⤊ 0⤋
its worth asking a dealer but I don't think so. Cars loose value lots and your best thing would be to sell it to a private party. You would get way more that way and use that money to pay it off and then get a cheaper car you can now afford. If you cant sell it maybe one of you can get a part time job for a while to make the payments. Don't let your credit get ruined.
2007-08-21 17:43:19 · answer #3 · answered by whata waste 7 · 0⤊ 0⤋
I depends on how many miles you have put on your car, I know someone that returned the car completely and they saw it as a repo, so be carefull. Just call your dealer and tell the situation, they should be able to help. You can always try and sell it privately.
2007-08-21 17:46:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋
if you turned that car in the dealership they would be happy to pay it off, but be prepared for all that money to be tacted on to your new car, than you would really have a high payment
2007-08-21 18:54:50 · answer #5 · answered by Anonymous · 0⤊ 0⤋