Upside down and so confused! Need help figuring out what to do next....

[Anonymous]

Another suggestion:

You can get a backup camera added to your car with 'relative' ease.  They have them that will use a new inside rearview mirror as the display unit.

Magellan GPS also sells units that have a wireless backup camera that integrates into some of their Magellan GPS.  The wireless backup camera is about 150 and the GPS is also about 150.   My Magellan GPS has a 5 inch screen, but I have not permanently mounted it, and I dont have the backup camera.  Just suggesting it as an option.

Best Buy sells GPS units that can be installed in your dash and they also do the installs.  I would recommend getting an in dash GPS installed and then also getting the rear view camera with the rear mirror.

Just a suggestion where you could avoid trading cars.   

If you really want a complete change, you would have to trade or sell the existing car and get a different one.  I can understand that decision too.

I leased two cars in the past.  Traded the first one (Honda Pilot) for the second one (Acura MDX) two years before the lease was up.  My finances went from excellent to poor in 6 years and the MDX was repo'd 3 months before the 48 month lease was up. 

The thing that is absolutely critical to keep in mind about leasing is that the last time you do it, you have nothing.

After that repo, I will never lease again because I want to build equity, even if it takes 48 months or more.

GL

[Anonymous]

That is bad news I've been there.  Just make a payment every 3 weeks instead of monthly and chip away at that negative equity. 

[Anonymous]

Update! 

So after a few months of thinking and researching, I've decided to do what FMC said. I will be able to pay it down by mid-Feb. Question: Should I actually pay the extra on the car monthly or stash the cash away and pay it all at once when I trade the car in a few months? Wouldn't it be considered a Down Payment if I do it then?

Appreicate all of the hepful advice! 

[Pharoe33]

What if you were able to purchase a new car with a rebates and special incentives big enough to cover the negative equity? Would that possibly work?

[Anonymous]

I was actually browsing the boards a little bit and came accross this idea. I've seen posts by several other members who went in about this time of year and got the past years model new  at a great price.  The used the big discounts offered to absorb negative equity/start off with equity in the vehicle. I was wondering if this may be a better move than waiting til Feb when i'd have the cash, but the incentives would be lower. I was also thinking that even if I rolled more in doing it now, I could still pay off more in Feb to help balance things out. Any thoughts?? Suggestions??

[Anonymous]

I would make my regular payments and then make a principle payment each month with whatever extra you can afford.  That will reduce your interest exposure a little bit and ensure that your no longer upside down in February.  

[cartwrna]

In a sense, even with a huge rebate/incentive that amount of negative equity will still put you even farther under than you are now. Most SUVS currently only have rebates in the 2-3k range. Things that hold their value best, and have the best rebates currently are trucks. Rams and Silverados have discounts/rebates up to 12-14k off MSRP. Still most of them are carrying a tag of 38-40k with the rebate. Roll in TTL and your 10-12k negative equity and your looking at around 52-55k out the door. That equates to a very large payment. I bought a 15' Silverado 2500 and after DP I financed 42k @ 3% for 75 months and payment is $608 a month, just a comparison.

[Anonymous]

Thanks for the comparison cartwrna. I did notice that the larger rebates are in the pickups and although I like them, I'm definitely not willing to dig myself deeper. I did a little searching and found a new 2015 Chevy Trax with a msrp of 24,999 for 17,800. I decided to go and see how the numbers would look.

They went up to 16K on my trade (From 14K)
I told them to take out the paint guard and other fluff totaling almost 1300
My current payoff is 24K so I basically would have ended up swapping vehicles but the payment was estimated to be about $60 lower.

I decided not to complete a credit app. In the car dealership, I made a decision. Whatever car I'm in, I will start paying 1k per month to get it paid off ASAP. I figure if I pay down that gap by Feb and then buy a commute car for 14K or less, I could be totally done with this situation and have a paid off car in less than 22 months. After that, I can use the disposable income to rent a car or do a short term lease (like swapalease, not through dealer) to fulfill my need to be in something bigger and better while not having to be committed to a buy.

I'm hoping this is the best financial decision....

[cartwrna]

Sounds like a good decision to me! I used to trade out of a lot of vehicles myself, and also was upside down. Thankfully I traded into the Silverado and with the rebates + 4K down it covered my negative and with the low interest rate I'm actually ahead Can't say the same about my wife's 13' Avenger. It's about 5k underwater :-/ We made the decision to pay it off and then get her into a new Explorer, were expecting our second child in April. That's one of the best decisions we have made I think.

[Anonymous]

I'll say if your planning on getting a house soon just keep the car. Drive it to the ground. Save the money and buy house of your dream. After buying house you can always get car you want. Do refinance for a lower rate if possible