Upside down loan help!!!!

[Anonymous]

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@mattayy wrote:

I would keep it I like it but my interest rate is 12%! My credit score is 630 but I just paid off all of my credit cards and they were all pretty maxed so that should help once they report $0 balances this month. I only have my car loan the car loan I am on with my mom and then I have a personal loan for $12k and that's it. I make $95k a year.

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If you paid off all your credit card balance. Wait till it report. Your score probably just 50+ points across board and with those your can get probably 2.99 for a refi. With 95k a year and no debt I'll trade that sucker in to get a BMW m4. That's what I will get nice y credit goes back up over 680

[mattayy]

Haha I agree! Lets wait it out and hope my score goes up, wouldn't mind an M4  

[Anonymous]

I don't think it is ever a good idea to roll negative equity into another car loan, perhaps there are some exceptions from time to time but only if you can get an ultra low APR. I went down this road several times when I was younger and I have learned you will always end up paying so better to do that earlier than later.  Personally I wouldnt sweat the APR in the short term, I would build my scores and make extra principle payments until you have a loan to value ratio you can refinance. 

[cartwrna]

If you do buy another car and roll the negative equity in per say, make sure it's a vehicle that holds its value and has good rebates to cover up the negative or you'll get shotty terms again. I traded in an upside down car (5k upside down) on a 2015 Silverado 2500 loaded out that I got 12k off MSRP with 0 down, and I'm now in the positive. These trucks hold their value well.

[youdontkillmoney]

If it was me, I'd sell the BMW since not only are you upside down already, but it'll only get worse as cars only depreciate so you will even more negaitve. Sell it, get rid of it while the price is higher than lower. Then buy a less expensive reliable car (maybe used car if that doesn't cramp your image for like $6,000) and use the rest to pay down your debt. What you will be left with is some debt and start living below your means so you will have boatloads of cash in the bank, no debt, and options to do/but what you want with the cash in your bank. Between my wife and I we make $300,000 a year total in our household, I still drive a 2007 Toyota Yaris (I bought for cash for $13,000)...at the end of this year 2016 it'll be ten years....I may start to look for a new car since it's been ten years. But we have zero debt and no stress. 

[jsucool76]

You'll always be upside down in every car loan. The car value goes down every day. Getting another car will put you in the same situation, over, and over again. Unless you're buying collectible/limited run cars, the value is never going to go up.


The car works....what do you gain by getting rid of it?

[cartwrna]

jsucool76, not completely true. Kelly Blue Book told me the value of my truck went up 3% a few weeks ago LOL. Kind of made me look at the email like whaaatttt. 2015 Silverado 2500HD. I bought it in June new and rolled 4K negative equity into it. With the discounts off MSRP I'm still ahead on the loan. APR is 3%.

[jsucool76]

If it went down 3% would you go "oh, time to buy a new truck"? Lol

[cartwrna]

Negative. I plan on being in this truck for many years to come. Those "luxury" vehicles lose their value quick though.

[mattayy]

GMC/Chevy trucks/SUV's hold their value really REALLY well, that is actually a really good idea. I like my bimmer and its fast and all that but for me a silverado or tahoe would be ideal! I am talking to a dealership this weekend, they have a brand new Silverado 1500 with $11.5 off and an extra $2k for trading in my car...I think I might actually end up ahead of the game or at least with a vehicle that won't depreciate so quickly!