we just purchased a car a year ago and financed it for 20,000. my wife now wants to trade it in because it uses alot of gas. She says there is something that will help pay for most of the loan we financed and get another car to finance. what are the possibilities of getting another car with still having a low payment. Is there anything that will help us.
2007-09-01 00:38:57 · 5 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
David, This isn't rocket science. If you want a new car take the old one and trade it in. But what I am wondering, if gas mileage wasn't an issue for you last year when you purchased your car, why is it such an issue now. The U.S. national average price of gasoline has only gone up 4 cents a gallon since last year.
There is no "program" to help you pay for the loan other than a good job.
So, if you don't want the car you have, sell it or trade it in. There are no secret formulas.
2007-09-01 02:58:42 · answer #1 · answered by mccoyblues 7 · 0⤊ 0⤋
Watch out throwing money in the car lot like that "Car Sharks" feeding frenzy. Did she want that car a year ago when gas was $3.50 a gallon and now at $2.85 it is so bad? If your upside down owe more that trade in value... on that car the car lot will arrange... Finance at high interest rate... to have you pay off the difference and start paying on your new car. However you will need additional GAP car insurance because you are still paying for two cars and insuring only one against damage. Do not trade in your car unless you have already paid enough on it so it is worth something in trade. Check the value of your car on auto trader.com and other web sites. You may choose to have the car professionally cleaned up and sell it your self. And that would be money in your pocket not the car shark dealership. Unless you can place 8,000 to 10,000 down payment on a new car you will be back in the upside down place again. $5,000 deprecation for driving around the block then tax title license. And then 3,4,5,and up to 6 years to pay at How many% Payback is heck. More sharks are low mile smart buy leases
2007-09-01 08:00:27 · answer #2 · answered by John Paul 7 · 0⤊ 0⤋
you are "upside down" you owe more than the car is worth if traded at this point the new loan will reflect the depriceated value of your trade plus the difference of that value and the unpaid balance of the loan, to be tacked onto the new loan.
this will make it even harder to get out from under the debt caused by the new car.. typicaly , nowdays it takes 4-5 years of payments to reach the brake even point. [ if the car in question has suffered zero damages, had all services and still has low miles for age.] you may be better off to sell outright and pay off the loan then buy a solid used vehicle that better suits your needs/fuel milage expectations.
good luck
2007-09-01 08:12:06 · answer #3 · answered by hobbabob 6 · 0⤊ 0⤋
More than likely you are "upside down" on your current loan, meaning that you owe more than the car is worth, unless you put down a large down payment when you bought it. If you are upside down, the balance will be added to the note on any replacement vehicle. Most of the time this is a LOSING proposition as your total monthly outlay will be higher even with the lower gas bills.
You need to check the blue book value on your current vehicle and compare that to the amount you owe.
2007-09-01 10:52:45 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Get a cheaper car than this one.
2007-09-01 08:02:05 · answer #5 · answered by CarmaNguyen 7 · 0⤊ 1⤋