Negative Equity (again)

[a2rob-one]

Question and advise. I have been nissans for the past 10 years. All financed through NMAC. Last year i traded in an 10 maxima for a 12 maxima. I now need a larger vehicle for an addition to family. Looking at a $39,000 pathfinder. In the past I would got into the dealership and drive out. ( I believe that I am considered a repeat/loyal customer or something of that nature) I noticed on my bill of sale from the 12 maxima their was some negative equity of about $6000.00. 

My concern is that I priced the trade in through KBB and they state given the condition and mileage under 30k that it is worth about 24K. I owe 36K on the vehicle. So if I were to put 10 to 15k down on the new vehicle, what would be my chances for getting the pathfinder? I know that I can go in and discuss with a dealer, just thought I would get an inside opinion first!

[HoldingOntoHope]

Well depending on the trade in value the dealer gives you then you are looking at about $11K negative by your own figures. So your down payment would cover that. The dealer could use any discount or rebates as a further down on the new vehicle (which would reduce your negative position in the new car depreciation). So if your income will support the loan then I would say that your chances are solid.

Do yourself a favor and don't let the dealership talk you into lowering your down payment and burying negative equity in this deal (again).

[azguy13]

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@HoldingOntoHope wrote:

Well depending on the trade in value the dealer gives you then you are looking at about $11K negative by your own figures. So your down payment would cover that. The dealer could use any discount or rebates as a further down on the new vehicle (which would reduce your negative position in the new car depreciation). So if your income will support the loan then I would say that your chances are solid.

Do yourself a favor and don't let the dealership talk you into lowering your down payment and burying negative equity in this deal (again).

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Great advice! It is amazing what car dealerships will do to put you into a vehicle. Sadly, a lot of times it will cost you more in the long run

[Dustink]

Can you hold out any longer with your Maxima?

Remember, you are allowed to pay more than your minimum payment on the auto loan. 

If you don't need those 7 seats for awhile. Think about making extra principle only payments on the Maxima.

The Maxima is a big car, maybe you can make it work a bit longer.

Try to get into equity, plus have a good down payment together.

Work on finding a solid deal on the next vehicle before you arrive. Check out the stickied thread about buying a car.

Get the shortest term you can afford, 36 months is usually good.

[StartingOver10]

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@Dustink wrote:

Can you hold out any longer with your Maxima?

Remember, you are allowed to pay more than your minimum payment on the auto loan. 

If you don't need those 7 seats for awhile. Think about making extra principle only payments on the Maxima.

The Maxima is a big car, maybe you can make it work a bit longer.

Try to get into equity, plus have a good down payment together.

Work on finding a solid deal on the next vehicle before you arrive. Check out the stickied thread about buying a car.

Get the shortest term you can afford, 36 months is usually good.

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^^^Yes! This is good advice above^^^.  Burying yourself in negative equity from vehicle to vehicle leads to financial difficulty. Trading in every one to two years is a guarantee for negative equity.

The time to put a stop to this rolling stone gathering more and more negative equity is now. Make your next purchase a solid one by not rolling negative equity into it at all,