topic Re: Upside down trade in help in Auto Loans

Upside down trade in help

Anonymous — Mon, 29 May 2017 12:00:29 GMT

I financed a 2012 Veloster late 2015. I had no credit history yet that time so I had a co signer help me. I have been trying to refinance my car loan at a 1 year and 9 month credit history, but I can't seem to get approved. I want to trade in my car but I would be upside down 6k since the trade in value is only 6k and I have a 12k balance left. I've been dying to get s2000 but with this upside down balance it's making things harder. It affects me everyday thinking about the car I really want. Could anyone give me any advice on how to get through this balance and being upside down if I do a trade in? I don't have 6k.. my score is 701 now after all the inquiries. I recently opened up 2 extra credit cards, totalling of 3 credit cards now. Capital one increased my credit limit recently. I am in desperate need of advice to see what I can do. My income is about 3k monthly but of course like anyone else, I have bills. Please help

Re: Upside down trade in help

Anonymous — Mon, 29 May 2017 13:02:11 GMT

Light a match. :-)

Re: Upside down trade in help

enjoimorenow — Mon, 29 May 2017 14:31:57 GMT

Whatever you do, don't roll one upside down car into another car you will be accumulating a lot of debt that will take you forever to pay off.

You need to work on paying down the principal on the loan you currently have. Paying the regular payment is going to do that very slowly since it's mostly interest, especially at the beginning of the loan. If you can add an extra $100 or so every month to your payment that will help you out a lot and you can get out of the vehicle sooner.

You can also try to see what you could sell the car for private party since it will likely be much higher than any dealer would offer a trade in for.

Re: Upside down trade in help

Anonymous — Mon, 29 May 2017 22:56:53 GMT

@Anonymous wrote:
I financed a 2012 Veloster late 2015. I had no credit history yet that time so I had a co signer help me. I have been trying to refinance my car loan at a 1 year and 9 month credit history, but I can't seem to get approved. I want to trade in my car but I would be upside down 6k since the trade in value is only 6k and I have a 12k balance left. I've been dying to get s2000 but with this upside down balance it's making things harder. It affects me everyday thinking about the car I really want. Could anyone give me any advice on how to get through this balance and being upside down if I do a trade in? I don't have 6k.. my score is 701 now after all the inquiries. I recently opened up 2 extra credit cards, totalling of 3 credit cards now. Capital one increased my credit limit recently. I am in desperate need of advice to see what I can do. My income is about 3k monthly but of course like anyone else, I have bills. Please help

I would learn to love the car you have because there is no way to make that 6k disappear, some trade in cars in this situation for something new with a large rebate to make it a wash or closer to a wash but of course there is no rebate on an S2000. My suggestion is to make double payments on the current car (if you can) until that negative equity is eliminated, have the second payment amount applied to principle. When you buy any car you are likley to have negative equity for at least 3 years so don't ever buy anything you cannot live with for 4-5 years. The S2000 is a want not a need, I am a car guy also so I understand its tough to differientiate because of the passion but don't compromise yourself financially long term over something like this. Keep your credit clean and work your way down the current loan and you'll be in a great position to pick up the dream car before you know it.

Re: Upside down trade in help

DeeBee78 — Tue, 30 May 2017 00:29:18 GMT

@Anonymous wrote:

@Anonymous wrote:
I financed a 2012 Veloster late 2015. I had no credit history yet that time so I had a co signer help me. I have been trying to refinance my car loan at a 1 year and 9 month credit history, but I can't seem to get approved. I want to trade in my car but I would be upside down 6k since the trade in value is only 6k and I have a 12k balance left. I've been dying to get s2000 but with this upside down balance it's making things harder. It affects me everyday thinking about the car I really want. Could anyone give me any advice on how to get through this balance and being upside down if I do a trade in? I don't have 6k.. my score is 701 now after all the inquiries. I recently opened up 2 extra credit cards, totalling of 3 credit cards now. Capital one increased my credit limit recently. I am in desperate need of advice to see what I can do. My income is about 3k monthly but of course like anyone else, I have bills. Please help
I would learn to love the car you have because there is no way to make that 6k disappear, some trade in cars in this situation for something new with a large rebate to make it a wash or closer to a wash but of course there is no rebate on an S2000. My suggestion is to make double payments on the current car (if you can) until that negative equity is eliminated, have the second payment amount applied to principle. When you buy any car you are likley to have negative equity for at least 3 years so don't ever buy anything you cannot live with for 4-5 years. The S2000 is a want not a need, I am a car guy also so I understand its tough to differientiate because of the passion but don't compromise yourself financially long term over something like this. Keep your credit clean and work your way down the current loan and you'll be in a great position to pick up the dream car before you know it.

The only vehicle I know of right now that can wash away 6K of negative equity is the Hyundai Sonata, but you have to buy a Limited or 2.0T trim to get the full 6K rebate.

Hyundai values tank really quickly though, especially with the manufacturer knocking 6K off the MSRP. You'd better be happy with it for the life of the loan if you wanted to go that route.

Re: Upside down trade in help

Loquat — Thu, 01 Jun 2017 11:36:17 GMT

@Anonymous wrote:

@Anonymous wrote:
I financed a 2012 Veloster late 2015. I had no credit history yet that time so I had a co signer help me. I have been trying to refinance my car loan at a 1 year and 9 month credit history, but I can't seem to get approved. I want to trade in my car but I would be upside down 6k since the trade in value is only 6k and I have a 12k balance left. I've been dying to get s2000 but with this upside down balance it's making things harder. It affects me everyday thinking about the car I really want. Could anyone give me any advice on how to get through this balance and being upside down if I do a trade in? I don't have 6k.. my score is 701 now after all the inquiries. I recently opened up 2 extra credit cards, totalling of 3 credit cards now. Capital one increased my credit limit recently. I am in desperate need of advice to see what I can do. My income is about 3k monthly but of course like anyone else, I have bills. Please help
I would learn to love the car you have because there is no way to make that 6k disappear, some trade in cars in this situation for something new with a large rebate to make it a wash or closer to a wash but of course there is no rebate on an S2000. My suggestion is to make double payments on the current car (if you can) until that negative equity is eliminated, have the second payment amount applied to principle. When you buy any car you are likley to have negative equity for at least 3 years so don't ever buy anything you cannot live with for 4-5 years. The S2000 is a want not a need, I am a car guy also so I understand its tough to differientiate because of the passion but don't compromise yourself financially long term over something like this. Keep your credit clean and work your way down the current loan and you'll be in a great position to pick up the dream car before you know it.

+1 I agree with this wholeheartedly. I too love cars and nothing makes me happier than getting a new one. If I could I would change every year but that's not possible for practical in my situation. Like its mentioned above, continue to make payments and pay as much as you can as often as you can to get your balance down. Good luck!

Re: Upside down trade in help

babbles — Sun, 04 Jun 2017 17:43:57 GMT

I agree with everyone here. Learn to love the car, keep paying it down, all the way down if not off would be better. There are no doubt dirty dealers out there who will make it happen for you but they just want to do the deal and that's it!! I am was in that situation but just continued to pay the balance down. Same for my home that was about 110k underwater back in 2009 but I just confinued to pay, and on time now I'm with plenty of equity at this point.

Re: Upside down trade in help

Anonymous — Mon, 05 Jun 2017 19:31:57 GMT

Trade in values leave room for the dealer to make a significant profit on the resale of your vehicle.

Pay the loan down some and then sell the car on your own once you can break even on it.

Re: Upside down trade in help

Anonymous — Sat, 22 Jul 2017 19:00:05 GMT

I feel your pain. Honestly, if you don't have the $6k to even that loan out, then, why even bother?

I was upside down on a loan once, I financed a used 2012 Chevy Cobalt 2dr for $12k. Turned around IN 2015 and then financed a new 2014 Chey Cruze at $25k (included the roll-over balance of about $7k).
Luck so happeend that I wound up in an accident that Totaled the front end of the cruze. Insurance paid that off.
I'm back on solid ground with my new 2017 Maxima. NEVER AGAIN will I be upside down. I learned! Now I pay the same amount (+$30) monthly for an updated ride witih better featues than I was paying fr the 2014 base cruze!

Re: Upside down trade in help

babbles — Sat, 22 Jul 2017 19:14:10 GMT

Good break for you, hopefullly no one was hurt in the accident but I don't ever want to be upside down! I have 21 payments left to USAA to pay off my 2010 Lexus HS250 and it's still looking and running good! The dealers try to take such advantage of you when your'e upside down! With 21 payments left, I learned to love mine and I just don't want another car payment for a while after this.

Re: Upside down trade in help

Anonymous — Mon, 24 Jul 2017 15:47:38 GMT

@Anonymous wrote:

@Anonymous wrote:
I financed a 2012 Veloster late 2015. I had no credit history yet that time so I had a co signer help me. I have been trying to refinance my car loan at a 1 year and 9 month credit history, but I can't seem to get approved. I want to trade in my car but I would be upside down 6k since the trade in value is only 6k and I have a 12k balance left. I've been dying to get s2000 but with this upside down balance it's making things harder. It affects me everyday thinking about the car I really want. Could anyone give me any advice on how to get through this balance and being upside down if I do a trade in? I don't have 6k.. my score is 701 now after all the inquiries. I recently opened up 2 extra credit cards, totalling of 3 credit cards now. Capital one increased my credit limit recently. I am in desperate need of advice to see what I can do. My income is about 3k monthly but of course like anyone else, I have bills. Please help
I would learn to love the car you have because there is no way to make that 6k disappear, some trade in cars in this situation for something new with a large rebate to make it a wash or closer to a wash but of course there is no rebate on an S2000. My suggestion is to make double payments on the current car (if you can) until that negative equity is eliminated, have the second payment amount applied to principle. When you buy any car you are likley to have negative equity for at least 3 years so don't ever buy anything you cannot live with for 4-5 years. The S2000 is a want not a need, I am a car guy also so I understand its tough to differientiate because of the passion but don't compromise yourself financially long term over something like this. Keep your credit clean and work your way down the current loan and you'll be in a great position to pick up the dream car before you know it.

^^^THIS 1000%

Re: Upside down trade in help

babbles — Mon, 24 Jul 2017 15:56:34 GMT

Steeler NYC you are on the money! I am less than 2 years away from paying off a very nice car and at one point wanted to trade and did walk away from a few deals and the main reason because it made no sense at all to keep carrying negative equity from car to car. I know we've beat this thread down but it is so true, you have to pay it down not trade it away. Like you stated or kind of, it's human implulse to buy on the dime! or trade on the dime! The subject is near and dear to me because i've made that mistake in the past and you never get from under unless you have some cash! There are dealers out there though that will make it happen with 6k under.

Re: Upside down trade in help

MAZDA3 — Wed, 26 Jul 2017 19:43:47 GMT

OP - Have you considered talking to a credit union? I'm sorry you're going through this. I was considering an Elantra over the Mazda 3 I bought in July. Seems I made the right decision with the Mazda. I had no idea Hyundais tanked in value so badly.

That said, Hyundais are fairly reliable cars. I'd set aside the "want" right now and concentrate on paying down the loan.

There will always be time later to satisfy the "want". Don't roll that negative value into a new vehicle, because then you'll get bored with the newer one and be even further under water.