Upside Down Loan HELP

Harvey26 · ‎03-24-2017

So I brought a 2017 Nissian Altima SR. on 02/07/17 for about 33K. with a rate of 4.77 financed through NMAC. Dealership I brought from has given me nothing but hell after realizing that i am totally over 120% LTV. A bunch of lies and back and forth and I am just over it at this point, I tried to return the same day no luck. It has been a constant battle. So at this point my car is only valued at 21K and my loan is at 32K. There is no way I can refi. I have attempted to trade in for something different and the most I have gotten offered is 18K for my car. Does anyone have any advice about how I can possibly get out of this? Should I contact corperate? Maybe look at legal consultation? Not really sure at this point but I do have my mom as someone who can help as she has a 803 TU score so if need be she can be my cosign but I really dont want or need her too do that. Any advice would be helpful.

My Scores Currently: Mid 600's to high 600's. Inqs and High Balances and Car Loan Really Dropped me about 50 pts.

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Anonymous · ‎03-24-2017

I don't get it.

So, on 2/7/2017 you purchased a brand new Nissan Altima SR and took out a $33,000 loan through NMAC at 4.77% is this correct?

From what I can interpret from your posting, it looks like you are upset with the 4.77% rate and wanted to refinance only to find that the loan is more than the car is worth and now you cannot refinance it. Is this correct? Who told you that you are 120% LTV? The bank/credit union you tried to refinance with?

4.77% is not horrible, especially if you chose a term longer than 60 months and have a sub 675 score. Unfortunately, the minute you drive the car off the lot it will depreciate. And if you signed for the loan you are kind of stuck with it unless you can prove fraud or if the car is a lemon.

I do not see many of these SRs are most Altimas are plain jane 4 cylinder cars, but I looked online and found that the SR starts at $28K MSRP. Did you get a ton of options on the car? Did you pay MSRP?? Going from $33K down to $21K is a huge drop unless you paid MSRP and then it makes sense. $33K seems like Maxima territory.

I do not really have much to offer you; I just wanted to see if this is what is happening so that others may be able to offer you advice.

Anonymous · ‎03-24-2017

@Harvey26 wrote:
So I brought a 2017 Nissian Altima SR. on 02/07/17 for about 33K. with a rate of 4.77 financed through NMAC. Dealership I brought from has given me nothing but hell after realizing that i am totally over 120% LTV. A bunch of lies and back and forth and I am just over it at this point, I tried to return the same day no luck. It has been a constant battle. So at this point my car is only valued at 21K and my loan is at 32K. There is no way I can refi. I have attempted to trade in for something different and the most I have gotten offered is 18K for my car. Does anyone have any advice about how I can possibly get out of this? Should I contact corperate? Maybe look at legal consultation? Not really sure at this point but I do have my mom as someone who can help as she has a 803 TU score so if need be she can be my cosign but I really dont want or need her too do that. Any advice would be helpful.

My Scores Currently: Mid 600's to high 600's. Inqs and High Balances and Car Loan Really Dropped me about 50 pts.

I don't understand how you financed 33k for a car that is worth far less. It is normal, entirely normal to be upside down on a car if you just bought it and did not put anything down then you can expect to be 5-6k upside down frequently because a new car depreciates when you drive it off the lot. I am guessing they sold you a bunch of warranties and crap, if so cancel them asap and that will get you some of that back. I am sorry to say that you cannot sign a deal and drive away and then expect the dealer to change the deal when you get home and do the math so calling corporate or a attorney will do nothing for you. The last thing you should do is trade this car in because it will put you further in the hole, that is simple math. Your mom co-signing will do nothing to help because no finance company other than the captive lender will touch a deal with that much negative equity. Like it or not you owe that money and it isn't going away. There are some that trade in cars for other cars that have high rebates to eat up negative equity but this is rarely a good idea because transaction costs as well as the depreciation of the new car will put you even further in the hole, you will just have a new car but more debt.

Dont' take my response as critisim, I have learned this lesson the hard way just like you are learning. Your interest is not terrible and you are already on the hook for the car so I would make your payments on time and 4 years from now you should be in the position where you have equity. Please let us know the details of what was included in the loan beyond the acutal car so we can help you out a bit.

StartingOver10 · ‎03-25-2017

Agree with both posts above. Looks like the dealer finance guy loaded up your contract with a bunch of extras.

As pointed out by workingfor850, you can mitigate your cost by dropping the "warranties and crap". To to that, you have to read your contract to determine which items were added. Look for the following, some can be terminated and others can't:

Extended warranty - this is usually very expensive and can be cancelled. Do it right away.
GAP insurance - usually very expensive when you purchase through the dealership. Much less if purchased directly from your insurance co.
Maintenance plans - these are a rip off. You get charged an arm and a leg and it is usually only good for 3 or 4 oil changes and then the dealer claims that there is no maintenance plan. Search the web - you will see a ton of complaints. Get your money back on this one - it is much better to pay as you get each service.
There are lots of other items that you were (probably) charged for that are rediculous like: nitrogen in tires, appearance package, anti-theft devices, interior protection package, Express Code marketing system, and more. These are items you have to negotiate before signing. They are all BS items that the dealer uses to bump the price. Next time you will be aware.

If you are able to drop the first 3 items, you should save many thousands of dollars. They won't make it easy for you, but be persistent and get it in writing. The credit will go to your lender to reduce your loan amount. This is a good thing. It gets you closer to being able to refi or closer to pay off of the current loan.

JGGM · ‎03-25-2017

I think it would be ill-advised to cancel Gap insurance. Cancel warranty if you must, but I would have gap coverage on that vehicle until it was paid for, refinanced, or traded in. This type of vehicle starts at $28k and goes up from there. So, if you got a warranty and rolled in sales tax, $32k doesn't seem out of the question for a loan balance. But I'm still confused as to the real issue here. Is it that you are trying to refinance the vehicle to get a lower rate? If so, realize that the rate you have isn't the end of the world. Or is the issue that you just want out of the car and can't believe you lost so much money so quickly, even though you obviously agreed to the original terms set forth? If this is the case, you have to decide how much you dislike the vehicle and how willing you are to write a check for $12k....or roll so,e into another vehicle, but you'll be even worse off then

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StartingOver10 · ‎03-25-2017

I wasn't suggesting to cancel GAP entirely. I was suggesting to cancel the GAP insurance that the dealership added to the contract as it is the most expensive GAP you can purchase. The OP can get GAP insurance through other resources - like his own insurance company for much less than what the dealership charges. Naturally he will want to check pricing and purchase GAP with the other vendor before he cancels the high priced GAP he has from the dealer.

compassion101 · ‎03-25-2017

People are often upside down on new cars, sometimes even a few years into the loan. Do you not like the car? Just drive it and make the payments if you like it.

Why is the dealership giving you a hard time? A hard time about what? What are you asking them to do that they are giving you a hard time about?

Appleman · ‎03-25-2017

If the OP purchased the 4 cylinder model, the price is closer to $25K

Add $3,000 for overpiriced extended warranty

Add $600-$1,000 for GAP (again likely overpriced)

Add $2,330 for sales tax (varies by locale)

Add $1,000 for maintenance (again overpriced)

Dealer fee $199 to $699 in my market.

OP stated at $32,000 that the deal was over 120% therefore 100% of the car price is less than $26,667. Or, over $5,333 worth of items in above section were financed.

Drive the car off the lot and lose 20% of value... $26,667 X .2 = $5,333 leaving a car value of $21,333. And there is up to $4,800 of available money.

$2,500 cash back + $1,300 package savings and $1,000 cash for financing through Nissan.

Very easy to see how the OP was crammed into this deal and has such a large negative equity. Unfortunately the laws are not there to protect the consumer when it comes to contract negotiations. The dealer playes on your emotions while they are all business.

Good luck to the OP. At this point the car is going to be a keeper. Find a way to fall back in love with car and pay off the loan as quickly as possible.

I agree with the advice so far to sell as many of the items that you can to lower the amount owed. Your interest rate is not terrible and even with a co-signer you will likley not find anyone to finance you with a $14,000 deficit.

Harvey26 · ‎03-31-2017

Appleman wrote: