Looking for some advice in a bad situation

Anonymous · ‎03-27-2015

Here is my problem. I have 2 cars. They're both fairly new. One car has a negative equity of 13k and the other has a negative equity of 4k. 13k negative equity is my bmw that i purchased last year. I bought the other car, a toyota camry for my sister, but she no longer can afford payments. The camry has negative equity of 4k. So now i'm stuck with both cars and both car payments. I'm looking at 17k of negative equity total. Is there anything i can do at this point besides just paying these cars off? My fico is around 730.

guydiver · ‎03-27-2015

@Anonymous wrote:
Here is my problem. I have 2 cars. They're both fairly new. One car has a negative equity of 13k and the other has a negative equity of 4k. 13k negative equity is my bmw that i purchased last year. I bought the other car, a toyota camry for my sister, but she no longer can afford payments. The camry has negative equity of 4k. So now i'm stuck with both cars and both car payments. I'm looking at 17k of negative equity total. Is there anything i can do at this point besides just paying these cars off? My fico is around 730.
Where Where are you getting your vehicle values? Is that trade-in value? Retail? Private Seller? I think your best bet is to pay down and sell the least upside down Camry first. Sort of like the snowball effect paying down credit cards. Start with the easiest one first. Camry is a popular model, so probably easiest to sell, and cheapest for sure. Look on-line and see what they are selling for. When you're upside down, trading is the worst thing you can do. Best to just bite the bullet and see if you can get a good private seller deal and cut your losses. As for the Beemer, are you planning on keeping it? Best advice is to pay extra towards the principle as soon as you can. That's a keeper unless you want to get hosed. No easy out there. Good luck to you.

'diver

StartingOver10 · ‎03-27-2015

^^^+100 to what guydiver said.

Sell the Camry first. Check the values with KBB and NADA. You can always get a Carmax estimate to know what your low end of the value range is right now. Those buy back estimates are good for 7 days IIRC. If you sell it private party you will get more than what Carmax will give you and Carmax gives you much more than what you would get on a trade (usually).
As to the BMW, are you looking to do something with it? Are the payments becoming a hardship or are you just worried about the $13k negative equity? Again, the amount of the BMW negative equity is dependent on the value you used - wholesale, trade, private party etc. Where did you get your estimate of value?

Anonymous · ‎03-27-2015

My plan is to keep the BMW, i just want to get rid of the Camry since there is no point of it sitting in my driveway for couple years. Those negative equity values i listed are from what i still owe on the loans and the kelly blue book trade in value to dealership. The BMW is a lot but i was planning on continueing to pay it, i just wanted to get rid of the Camry payment.

junebug225 · ‎03-28-2015

As mention I would see how much Carmax will give you for it and maybe consider paying the difference or list it on craigslist because you never know what someone is willing to pay for the right car.

Fico's EQ 540 TU 529 EX 517 starting 3/2015
Fico's EQ 760 TU 775 EX 771 as of 04/204
Long term 775 across the board

Anonymous · ‎03-28-2015

Unfortunately there is nothing you can really do to get rid of 13k of negative equity except pay it off. Of course you could probably do a trade in of the two cars and buy a new car which would just roll the negative equity into another loan that would put you further upside down. Selling the Toyota is your best shot to get to your goal but you will end up paying a pretty big chunk to get rid of it. I would say your best shot is probably to do all you can to pay the Toyota down until you can break even. You can try a private party sale which is where you will get the most for the car, carmax will buy it but they will be looking at a tradein/wholsale price which is probably going to put you further in the hole. Also they won't buy it from you unless you can provide them with a title which of course will take at least a few thousand dollars. Wish I had better news for you.

ah32 · ‎03-28-2015

I would sell the camry. It sounds like you stand to lose the least amount of money with the camry. Try to sell to a private party. Maybe another relative wants to take over the car? What about your financing? Can you refi the BMW in order to save on interest?

guydiver · ‎03-28-2015

@Anonymous wrote:
My plan is to keep the BMW, i just want to get rid of the Camry since there is no point of it sitting in my driveway for couple years. Those negative equity values i listed are from what i still owe on the loans and the kelly blue book trade in value to dealership. The BMW is a lot but i was planning on continueing to pay it, i just wanted to get rid of the Camry payment.
You You might not be so bad off really. Private seller values are considerably higher than trade-in values. Try to get what you owe on it. The cleaner and better shape it is in will help.