@Anonymous wrote:
@Dj4Money wrote:
@sccredit wrote:
@Dj4Money wrote:
@sccredit wrote:
@Dj4Money wrote:
@sccredit wrote:
When trading vehicles on a regular basis there comes a time when you have to suck it up and deal with one of two options -
Option 1 - Suck it up until the vehicle is paid off
Option 2 - Write a big fat check
I've been in both scenarios, neither is a good one.
Unfortunately most finance companies have advance guidelines - say 120% LTV. In order to comply with that and bury $10k of negative equity you would have to buy a $50k vehicle, put down 100% of TT&L and then carry the $10k.
You could try a lease but even then I'd almost guaranty that you'd have to write a big check.
Wait, how did you do that?
I have to bury $4093. I have since re-fi'ed my current car so the pay off will be lower, therefore reducing the negative balance. How would I calulate that properly?
Take the blue book of the car (most financial institutions will use NADA retail) times 1.2 (120%), that will tell you your max loan amount on a 120% LTV lender
Actually I mean -
You told the OP he had to buy a $50K car to bury $10,000 in negative balance. How did you come to that conclusion?
If a lender is going to advance 120% LTV OP has to buy a vehicle WORTH $50k to bury $10k. Granted OP can get a deep discount on something but as a general rule a 120% LTV would take a $50k car to bury $10k in negative equity. OP can go look at a $30k car with deep discounts but the chances that a financial institution would allow OP to bury $10k into something cheaper is slim to none.
So basically what you are saying is that a car/truck/suv that cosst $50K would have enough margin in it that a dealer could discount it by $10,000 without rolling it into the loan correct?
I owe roughly $4000 in my car, so I would need to get something in the $40K range to bury my negative balance? There's a $2,000 rebate on the Dodge Charger R/T....
charger st , lexus, focus st editions.... Im sorry but maybe you should look for something more practical for you and your family. It seems some of this pickle that you are in is over buying cars that do not fit your lifestyle and needs. the idea is to make the balloon smaller, not wider.
I was in the same boat as you. facing 7200$ in negative equity. I found a reliable practical new car for my needs with cash rebates/incentives. that with alittle money down made up some of it. The rest was made up with good old fashion car price negotiation.
I truly wish you the best of luck and urge you to look at model cars that will best fit your situation for the full term of the auto loan. And dont go back to carmax, ever. they are a scam. Find a local credit union.
I don't have a family, I am single... I am not in a pickle, the car is fine. I am an auto enthusiast and a drag racer, my current car is not suited for that. The Focus ST is practical, it's four doors with a hatchback still gets 33-34 MPG out of boost and runs on 87 octane at the cost of about 15hp. It's only slightly less efficient than my Hyundai (combined economy on 87 octane, Hyundai 31 MPG, Focus ST 29 MPG).
Speaking of family it's fine for a young family as I mentioned it has five doors and is larger than my Accent.
I don't know what my new 10 Day will be after I make my next payment after the re-fi but it should be less than $4,000; maybe about $3700.
I was trying to understand why Ford keeps rejecting loans for the car no matter how they are written. One of the reasons Ford Credit stated was the car was too much for my income level.
Like another post the affordability of the ST is based on getting low interest rates. My repo forces rates up, but by how much is not known. 25% of income is a payment about $400.
Obviously I would like less than that, but according to my calculations, even a modest 4.49% I have on my Hyundai after the re-fi would make my payment just over $400 ($405-$413) with all the rebates + $1,000 cash.
The highest incentives were around Memorial Day and 4th of July, in which Ford was putting $3,500 on the hood with trade-in allowance ($1,500), Ford Credit Rebate ($1000) and Focus Rebate ($1,000).
Besides the negative equality is dealers low balling the trade. I wasn't and still not willing to put down more than $1,000 not now. I am going to Latin America, that comes first over all else, I can put this on the shelf for six months, I will eventually get one.
