Trade in Question

[Anonymous]

I currently am financing a new Hyundai elantra.  My APR is 18% through Cap one.  My pay off quote is approx 17000.  The trade in value is approx 11,500 and the car I want to trade it in for is 18921.  The original finance amount for the elantra was 19111 and I was approved for it with mid 500 scores, no credit cards and my most recent derog (about 9 months before the elantra approval) was 4 lates on my previous auto loan.  The car I want to finance is a 2010 ford escape with 19000 miles and it costs 18921.  I want to finance about 15000 dollars.  Is this something that is done often?  according to the loan calculators it will work out to be less money for me even with the same APR.  18921(escape price) -11500(elantra trade in value)+5500(amount owed on elantra loan) = 12921 is my thinking correct on this?  Do you think I have a chance?  My median scores are about 620 and now I have two credit cards with low balances (Even tho they havent reported the lower balances yet which may cause a problem) and an auto loan since sept 2010 for 435.88 a month never late.   

[UpNComing]

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@Anonymous wrote:

I currently am financing a new Hyundai elantra.  My APR is 18% through Cap one.  My pay off quote is approx 17000.  The trade in value is approx 11,500 and the car I want to trade it in for is 18921.  The original finance amount for the elantra was 19111 and I was approved for it with mid 500 scores, no credit cards and my most recent derog (about 9 months before the elantra approval) was 4 lates on my previous auto loan.  The car I want to finance is a 2010 ford escape with 19000 miles and it costs 18921.  I want to finance about 15000 dollars.  Is this something that is done often?  according to the loan calculators it will work out to be less money for me even with the same APR.  18921(escape price) -11500(elantra trade in value)+5500(amount owed on elantra loan) = 12921 is my thinking correct on this?  Do you think I have a chance?  My median scores are about 620 and now I have two credit cards with low balances (Even tho they havent reported the lower balances yet which may cause a problem) and an auto loan since sept 2010 for 435.88 a month never late.   

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You're off on your amount financed.  It goes like this:

Price =                 $18921

Minus trade=      $11500

Plus payoff=       $17000

Equals amount financed

                             $24421!

And thats without taxes and MV fees!  You'll need around 10K down to finance round 15K.

[StartingOver10]

Is the trade in value you quoted what the dealer said he would give you? Or did you get that value from some where else?

Are you thinking of trading in now because you have increased your scores and want to drop your payment?

Have you considered going to your local CU with your new, higher scores, and see what they would do for you with a refi and your down payment? It might be a better solution than adding all the negative equity onto a new purchase. JMO.

[Anonymous]

i'm such a moron. i knew it was too good to be true. thanks for the correction

[Anonymous]

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@StartingOver10 wrote:

Is the trade in value you quoted what the dealer said he would give you? Or did you get that value from some where else?

Are you thinking of trading in now because you have increased your scores and want to drop your payment?

Have you considered going to your local CU with your new, higher scores, and see what they would do for you with a refi and your down payment? It might be a better solution than adding all the negative equity onto a new purchase. JMO.

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I got those figures from KBB and stuff just to ball park it.  I have a friend that works at the dealership where I bought the elantra and was going to trade it in for the escape.  I wanted to trade in because I got confused by the auto loan calculator.  I did want to lower my payment and was super excited because I thought i was going to lower my payments and get a vehicle I actually wanted.   What do you mean what the CU could do for me?  In terms of just refi or trading in?  and I dont have a down payment.

[UpNComing]

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@Anonymous wrote:

i'm such a moron. i knew it was too good to be true. thanks for the correction

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No you're not.  It happens all the time

[Anonymous]

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@Anonymous wrote:

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@StartingOver10 wrote:

Is the trade in value you quoted what the dealer said he would give you? Or did you get that value from some where else?

Are you thinking of trading in now because you have increased your scores and want to drop your payment?

Have you considered going to your local CU with your new, higher scores, and see what they would do for you with a refi and your down payment? It might be a better solution than adding all the negative equity onto a new purchase. JMO.

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I got those figures from KBB and stuff just to ball park it.  I have a friend that works at the dealership where I bought the elantra and was going to trade it in for the escape.  I wanted to trade in because I got confused by the auto loan calculator.  I did want to lower my payment and was super excited because I thought i was going to lower my payments and get a vehicle I actually wanted.   What do you mean what the CU could do for me?  In terms of just refi or trading in?  and I dont have a down payment.

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and the ford escape would lower my auto insurance by almost 50dollars a month

[StartingOver10]

Oh, I thought you had $5500 to put down with the trade (I misread your original post).

Most CU's have much easier terms for you to refi your loan, but they limit the amount they will finance based on your history/score and the collateral. Even if you were to sell your current vehicle at a better than trade in amount, you would end up having to bring cash to the deal to sell it. You are more upside down due to your rate, so more of your payment goes toward interest than principal. The original lender knew you would be in this deal a while. Do you have a source of funds you can access to pay down the balance? Like selling things you don't need around the house etc. Once you get the balance down, your options will really open up and you can get the car you want.

[Anonymous]

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@StartingOver10 wrote:

Oh, I thought you had $5500 to put down with the trade (I misread your original post).

Most CU's have much easier terms for you to refi your loan, but they limit the amount they will finance based on your history/score and the collateral. Even if you were to sell your current vehicle at a better than trade in amount, you would end up having to bring cash to the deal to sell it. You are more upside down due to your rate, so more of your payment goes toward interest than principal. The original lender knew you would be in this deal a while. Do you have a source of funds you can access to pay down the balance? Like selling things you don't need around the house etc. Once you get the balance down, your options will really open up and you can get the car you want.

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Ugh this sucks, I got bullied and sexually harassed (the salesman told me he "wanted to ::Explicative:: me" more than once)  into this car and I would have never taken it if I wasn't so scared and wanting to leave so bad.  Now I'm stuck  for 6 more years. 

[UpNComing]

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@Anonymous wrote:

Ugh this sucks, I got bullied and sexually harassed (the salesman told me he "wanted to ::Explicative:: me" more than once)  into this car and I would have never taken it if I wasn't so scared and wanting to leave so bad.  Now I'm stuck  for 6 more years. 

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This seriously has to be one of the most outrageous things I've ever heard of!