Trading upside down loans

[Caleb87]

So the wife and i has 2006 jeep commander 193,000 miles. As usual for chrysler it came with the POS package and is nickel and diming us to death. Weve been interested in getting a newer uses vehicular device but has no down payment. Only thing i can thibk of is buy at a buy here pay here and then use that one as collateral to pay off our current loan. We have about 5 thousand negative equity due to an emergency refinance awhile back. Has anyone ever heard a used car lot allowing this or maybe just wrapping the neg equity up into the new loan? Not sure if i could get that kinda deal on a used car though. Any suggestions?

[Caleb87]

Forgot to mention with credit recovering this would be a high interest poor peoples kinda financing

[Appleman]

Yes, they can wrap $5,000 equity into a used car loan. This is never recommended but I understand it is the situation you find yourself in. Take the time to research everything as it will be difficult to find a good deal.

Find out the value of the trade (may be worth it to sell that yourself). Check the value of the new to you used car and negotiate on the financing.

Good luck.

[Anonymous]

I'd thumbs down any loan that isn't 80% LTV.

What's preventing you from part time jobs to save up enough to buy a $12,000 used car with $2400 down? Couple of months of work each and you're there!

Going negative equity at any point in a loan is dangerous and usually a warning flag of worse credit shape down the road.

Or how about buying a decent shape car for $3000 cash and driving it until you can fix your credit issues and qualify for a manageable loan later?

[Caleb87]

If all those other options were feasible at this point we would do it. My wife and i are big fans of paid off cars and driving them till tbey croak and fixing them. Finances are temporarily stretched. Emergency took our maternity leave mone we had saved up and now going into winter in ohio with a 2 month old. Another thing is the current vehichle is one she got into with her ex husband and really wants a new start. We dont want to keep putting money into the jeep. Wed much rather put new engines and transmissions into a 10 year old suburban or tahoe or other vehichle that fits our lifestyle better

[Caleb87]

Part time jobs are no go at the moment. Just quit one actually as my primary job takesxtoo much outta me