Will I be able too?
2007-09-18 12:43:17 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
most of these people who have already answered the question don't have a clue as to what you can do.. Now.. here is the real truth.. yes you can trade in your car to buy another one.. but and it is a big but.. if you are upside down.. owe more than it is worth.. you will have to borrow enough to pay off the amount owed less your trade in allowance... which means that if you trade your old car in on a used vehicle.. you will have to finance the amount of the new car.. plus the amount extra amount that you owe on your car.. The best thing you can do is, if your credit will qualify you, is to buy a brand new vehicle... and here is why.. lets say that the true tradein or wholesale value of your car is 5,000 dollars, but you owe 7,000 dollars on it.. you are 2000 upside down.. pick a new car.. lets say a jeep.. that has a 4,000 dollar rebate.. you can negotiate the selling price of the jeep down to a buying price.. (in other words the dealer should discount off the sticker at least 7 percent..) now they allow you 5000 for your trade in.. you can use 2000 of the 4000 rebate to pay off the old car.. plus have 2000 left over for your tag and taxes... you can do this.. but you need to be informed as to exactly how much upside down you are.. go to your banker and ask them what the loan value on your car is.. that will tell you the true wholsale value of your present car.. get the true amount and then start shopping.. right now is an excellent time to do it.. but be careful to not allow the dealer you choose to fool around with the numbers.. be selective and be a hard nosed discount shopper... make them discount off the sticker.. and reserve the rebate for yourself..good luck
2007-09-18 13:15:25 · answer #1 · answered by J. W. H 5 · 1⤊ 0⤋
You refinanced a CAR? Typically, you should try not to finance a depreciating asset like a car in the first place. If your car is not paid off, then there is a very very good chance that you are upside down (you owe more than the car is worth). If that is the case, then you would have to come up with the difference, or roll that excess amount into the new loan. VERY VERY bad idea.
Don't listen to the New Car Salesman at the bottom. You buy a new car for 20 grand and it is worth only 18 before you even make the first paymnet!!
Then you'd be financing a depritiating asset AND you'd also be making payments and interest on the amount you depreciated a car you no longer even own!
You are digging a very deep hole here.
PAY OFF YOUR CAR! In the future, buy good used cars for CASH.
2007-09-18 12:49:45 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Basically, you are screwed.
If you trade with a balance, IF you are approved for the trade, in spite of what the dealer will tell you about trade-in allowance, you will still pay for the car you give the dealer, plus you will pay for the new car.
My advise is to keep your car. Pay it off. Continue to deposit the payments into a savings account, and when you can afford it, go buy a car outright.
In general, pay attention to what Rick B. said, it is good financial advise.
2007-09-18 13:20:49 · answer #3 · answered by Doc Hudson 7 · 0⤊ 0⤋
If you refinanced your car using the car as collateral, you will not be able to trade it in until the loan it is securing is paid off. That's because the lender holds title to the car (the pink slip) and you can't trade in a car without the pink slip. You don't own it. The lender does.
That's also why you have to manitain a minimum amount of insurance that is determined by the lender. If you wreck it, they want to make sure they get their money, since the car would be worthless if you couldn't afford to fix it.
2007-09-18 12:49:32 · answer #4 · answered by Paul in San Diego 7 · 0⤊ 2⤋
The webguide http://mortgagehelp.assistancecenter.info
has highly useful info on mortgage and home financing.
You can get all your doubts clarified from the site.
Check it out. Good luck!
2007-09-18 21:43:03 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Is this in the wrong catagory? As this is personal property not real property. Forgive me if I come across rude I don't mean to I just thought another catagory would get you better answers.
2007-09-18 13:01:20 · answer #6 · answered by Anonymous · 0⤊ 1⤋
shouldn' t be a problem
consider your decisions , you will lose out in terms of interest and other finance charges since you just refinace it
2007-09-18 12:49:01 · answer #7 · answered by bm warrior 1 · 0⤊ 0⤋
Good discussion, just what I was looking for.
2016-08-24 16:33:28 · answer #8 · answered by Anonymous · 0⤊ 0⤋