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6K Negative Equity/Dealer Incentives and Rebates On New Vehicle

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Regular Contributor

6K Negative Equity/Dealer Incentives and Rebates On New Vehicle

Good evening, 

I'm hoping you all can help me with the below situation. I have a 2014 GMC ACADIA SLT2 that we're not happy with. I hope I included all of the pertinent information below. I financed this vehicle after being discharged from a BK in December of 2019. Since then, my credit is better. No lates or any derogs since. My thinking is that if we're going to get out of this vehilcle, do it now before we hit 100K miles. 

 

 

2014 GMC Acadia SLT2

Miles: 86,000

Carmas Value: $12,000

KBB Trade-in Value: $13,500

Original Loan Amount: $18,819.20

Term: 63 months

Monthly Payment: $386.59

APR: 9.11%

Current payoff: $17,500

 

I have about 5k in negative equity in this vehicle (if I assume the Carmax offer is similar to what I'll get with a trade). I've been looking at newer SUV's. Am I right in that the incentives off of a newer vehicle (for example MSRP 35K with incentives/rebates 30K) can help offset the negative equity for a potential loan? I have enough cash to cover the difference. I'd prefer, however, to cover 2.5K and roll the other 2.5K into a vehicle. To do this, are new vehicles pretty much my only option? If so, anyone aware of any good incentives being offered on SUV's at this time? Are the best incentives typically offered in October? Any help or guidance you can offer would be greatly appreciated. My EX/TU/EXP auto ficos 5, 4 & 2 (straight from a recent 3b pull) are 676, 658 and 633 respectively. Almost all dealderships in the SE (I'm in Ga) pull Equifax from my past experience.

 

 

 

Message 1 of 14
13 REPLIES 13
Regular Contributor

Re: 6K Negative Equity/Dealer Incentives and Rebates On New Vehicle

You could check Carvana and see what they offer. They will roll 2500 negative equity into a trade in but not sure if their APR won't kill you. They have been offering more than others for used cars. Other than that you probably will need to do a new car to bury equity. 


CH 7 DIS (07/10/15)
TU-496 EQ-545 EX-518 (07/10/15)
(4/10/16) TU-634 EQ-612 EX--639

Cap 1 QS1 $2000 , Cap 1 QS1 $1300 ,Firestone $1200 , Cap 1 Sony Rewards $2750 , Discover IT student (secured) , 1000, Cap1 Spark $2000, Barclay's Apple $2000
Message 2 of 14
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Frequent Contributor

Re: 6K Negative Equity/Dealer Incentives and Rebates On New Vehicle


@bramma_99 wrote:

Good evening, 

I'm hoping you all can help me with the below situation. I have a 2014 GMC ACADIA SLT2 that we're not happy with. I hope I included all of the pertinent information below. I financed this vehicle after being discharged from a BK in December of 2019. Since then, my credit is better. No lates or any derogs since. My thinking is that if we're going to get out of this vehilcle, do it now before we hit 100K miles. 

 

 

2014 GMC Acadia SLT2

Miles: 86,000

Carmas Value: $12,000

KBB Trade-in Value: $13,500

Original Loan Amount: $18,819.20

Term: 63 months

Monthly Payment: $386.59

APR: 9.11%

Current payoff: $17,500

 

I have about 5k in negative equity in this vehicle (if I assume the Carmax offer is similar to what I'll get with a trade). I've been looking at newer SUV's. Am I right in that the incentives off of a newer vehicle (for example MSRP 35K with incentives/rebates 30K) can help offset the negative equity for a potential loan? I have enough cash to cover the difference. I'd prefer, however, to cover 2.5K and roll the other 2.5K into a vehicle. To do this, are new vehicles pretty much my only option? If so, anyone aware of any good incentives being offered on SUV's at this time? Are the best incentives typically offered in October? Any help or guidance you can offer would be greatly appreciated. My EX/TU/EXP auto ficos 5, 4 & 2 (straight from a recent 3b pull) are 676, 658 and 633 respectively. Almost all dealderships in the SE (I'm in Ga) pull Equifax from my past experience. 

 

I just purchased a Chevy Equinox for 20,700 before tax, fees, ect. MSRP is 31.2.

 

 


 

Message 3 of 14
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Regular Contributor

Re: 6K Negative Equity/Dealer Incentives and Rebates On New Vehicle


@FMC wrote:

@bramma_99 wrote:

Good evening, 

I'm hoping you all can help me with the below situation. I have a 2014 GMC ACADIA SLT2 that we're not happy with. I hope I included all of the pertinent information below. I financed this vehicle after being discharged from a BK in December of 2019. Since then, my credit is better. No lates or any derogs since. My thinking is that if we're going to get out of this vehilcle, do it now before we hit 100K miles. 

 

 

2014 GMC Acadia SLT2

Miles: 86,000

Carmas Value: $12,000

KBB Trade-in Value: $13,500

Original Loan Amount: $18,819.20

Term: 63 months

Monthly Payment: $386.59

APR: 9.11%

Current payoff: $17,500

 

I have about 5k in negative equity in this vehicle (if I assume the Carmax offer is similar to what I'll get with a trade). I've been looking at newer SUV's. Am I right in that the incentives off of a newer vehicle (for example MSRP 35K with incentives/rebates 30K) can help offset the negative equity for a potential loan? I have enough cash to cover the difference. I'd prefer, however, to cover 2.5K and roll the other 2.5K into a vehicle. To do this, are new vehicles pretty much my only option? If so, anyone aware of any good incentives being offered on SUV's at this time? Are the best incentives typically offered in October? Any help or guidance you can offer would be greatly appreciated. My EX/TU/EXP auto ficos 5, 4 & 2 (straight from a recent 3b pull) are 676, 658 and 633 respectively. Almost all dealderships in the SE (I'm in Ga) pull Equifax from my past experience. 

 

I just purchased a Chevy Equinox for 20,700 before tax, fees, ect. MSRP is 31.2.

 

 


 


FMC, how did you end up getting a deal like that? I like the Equinox and the Trailblazer.

Message 4 of 14
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Frequent Contributor

Re: 6K Negative Equity/Dealer Incentives and Rebates On New Vehicle


@FMC wrote:

@bramma_99 wrote:

Good evening, 

I'm hoping you all can help me with the below situation. I have a 2014 GMC ACADIA SLT2 that we're not happy with. I hope I included all of the pertinent information below. I financed this vehicle after being discharged from a BK in December of 2019. Since then, my credit is better. No lates or any derogs since. My thinking is that if we're going to get out of this vehilcle, do it now before we hit 100K miles. 

 

 

2014 GMC Acadia SLT2

Miles: 86,000

Carmas Value: $12,000

KBB Trade-in Value: $13,500

Original Loan Amount: $18,819.20

Term: 63 months

Monthly Payment: $386.59

APR: 9.11%

Current payoff: $17,500

 

I have about 5k in negative equity in this vehicle (if I assume the Carmax offer is similar to what I'll get with a trade). I've been looking at newer SUV's. Am I right in that the incentives off of a newer vehicle (for example MSRP 35K with incentives/rebates 30K) can help offset the negative equity for a potential loan? I have enough cash to cover the difference. I'd prefer, however, to cover 2.5K and roll the other 2.5K into a vehicle. To do this, are new vehicles pretty much my only option? If so, anyone aware of any good incentives being offered on SUV's at this time? Are the best incentives typically offered in October? Any help or guidance you can offer would be greatly appreciated. My EX/TU/EXP auto ficos 5, 4 & 2 (straight from a recent 3b pull) are 676, 658 and 633 respectively. Almost all dealderships in the SE (I'm in Ga) pull Equifax from my past experience. 

 

I just purchased a Chevy Equinox for 20,700 before tax, fees, ect. MSRP is 31.2.

 

$11k off of MSRP?!


 


 

Message 5 of 14
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Frequent Contributor

Re: 6K Negative Equity/Dealer Incentives and Rebates On New Vehicle


@bramma_99 wrote:

@FMC wrote:

@bramma_99 wrote:

Good evening, 

I'm hoping you all can help me with the below situation. I have a 2014 GMC ACADIA SLT2 that we're not happy with. I hope I included all of the pertinent information below. I financed this vehicle after being discharged from a BK in December of 2019. Since then, my credit is better. No lates or any derogs since. My thinking is that if we're going to get out of this vehilcle, do it now before we hit 100K miles. 

 

 

2014 GMC Acadia SLT2

Miles: 86,000

Carmas Value: $12,000

KBB Trade-in Value: $13,500

Original Loan Amount: $18,819.20

Term: 63 months

Monthly Payment: $386.59

APR: 9.11%

Current payoff: $17,500

 

I have about 5k in negative equity in this vehicle (if I assume the Carmax offer is similar to what I'll get with a trade). I've been looking at newer SUV's. Am I right in that the incentives off of a newer vehicle (for example MSRP 35K with incentives/rebates 30K) can help offset the negative equity for a potential loan? I have enough cash to cover the difference. I'd prefer, however, to cover 2.5K and roll the other 2.5K into a vehicle. To do this, are new vehicles pretty much my only option? If so, anyone aware of any good incentives being offered on SUV's at this time? Are the best incentives typically offered in October? Any help or guidance you can offer would be greatly appreciated. My EX/TU/EXP auto ficos 5, 4 & 2 (straight from a recent 3b pull) are 676, 658 and 633 respectively. Almost all dealderships in the SE (I'm in Ga) pull Equifax from my past experience. 

 

I just purchased a Chevy Equinox for 20,700 before tax, fees, ect. MSRP is 31.2.

 

 


 


FMC, how did you end up getting a deal like that? I like the Equinox and the Trailblazer.

OTD price was 23.5. Originally they wanted 24.3 before TTL & fees.I agreed to that price since they were at least being transparent on price and fair with my trade. I knew my scores were low going in but thought GM would pull my TU auto 9 which is 602 and last year with lower scores worse LTV GM approved me at 7.9 but I decided not to buy. Lo and behold they used my Eq score which was 556 my EX is 622.

So the rate came back too high so I got up to leave and figured go pull my Eq and investigate the variance . As I was outside the dealership the salesman chased me down and politely asked me to come back in and meet with finance director. Finance director immediately dropped price of car to actually 20,640 and lowered int rate a couple of points. Told min I needed to think about it, left dealership.

Went to one other dealership a week later, they offered me almost half for my trade, no dealer discount, did not apply all incentives.Told them offer was ridiculous, I am not negotiating off of it demanded key back to my trade, left that dealership and promptly went to the original one where they honored all aspects of the deal. 

Since my Eq score is so low a pre approval from a CU was not possible. CapOne auto navigator keeps declining saying over limit on CapOne cards which I am not. 

The short answer was luck and go for the Equinox instead as bigger incentives would be better than Trailblazer for IMO

Message 6 of 14
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Frequent Contributor

Re: 6K Negative Equity/Dealer Incentives and Rebates On New Vehicle

Sorry if the above post was too lengthy just wanted to share my experience and hopefully it was helpful to OP and others. 

OP curious what state are you in. 

Message 7 of 14
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Regular Contributor

Re: 6K Negative Equity/Dealer Incentives and Rebates On New Vehicle


@FMC wrote:

Sorry if the above post was too lengthy just wanted to share my experience and hopefully it was helpful to OP and others. 

OP curious what state are you in. 


Your post was fantastic, @FMC. Very detailed and really helped alot. I'm doing lots of research, as with the year ending, I assume the incentives/rebates are going to be as good as they'll get. I've never bought a new car before so this is a new experience for me.

 

I'm in southern Georgia. I did happen to go through the process with Carvana as far as selling the vehicle (they are who I got it from). Instead of the 12K offer from Carmax, they offered 14.7K! They wanted me to go get a cashier's check for the difference of about $3200. I went ahead and did so. Now I'm waiting for them to schedule the appointment. If this goes through, I think selling will offer me more flexibility than trying to flip over some negative equity into another vehicle. Even if I was able to flip it over, I would have likely put at least 2K down on the deal. So I'm just looking at the $3200 as that down payment money. Now I'm not penciled into a new vehicle as my only option because I need room for negative equity. Interested to haer opinions on my course of action. 

Message 8 of 14
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Frequent Contributor

Re: 6K Negative Equity/Dealer Incentives and Rebates On New Vehicle


@bramma_99 wrote:

@FMC wrote:

Sorry if the above post was too lengthy just wanted to share my experience and hopefully it was helpful to OP and others. 

OP curious what state are you in. 


Your post was fantastic, @FMC. Very detailed and really helped alot. I'm doing lots of research, as with the year ending, I assume the incentives/rebates are going to be as good as they'll get. I've never bought a new car before so this is a new experience for me.

 

I'm in southern Georgia. I did happen to go through the process with Carvana as far as selling the vehicle (they are who I got it from). Instead of the 12K offer from Carmax, they offered 14.7K! They wanted me to go get a cashier's check for the difference of about $3200. I went ahead and did so. Now I'm waiting for them to schedule the appointment. If this goes through, I think selling will offer me more flexibility than trying to flip over some negative equity into another vehicle. Even if I was able to flip it over, I would have likely put at least 2K down on the deal. So I'm just looking at the $3200 as that down payment money. Now I'm not penciled into a new vehicle as my only option because I need room for negative equity. Interested to haer opinions on my course of action. 

 

Smart move selling to Carvana and not rolling it in. You can buy now new/ used whatever you want to spend. IMO worst part of neg equity roll in is it potentially limits vehicle options. 

Message 9 of 14
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Regular Contributor

Re: 6K Negative Equity/Dealer Incentives and Rebates On New Vehicle

I wanted to provide an update to this thread, as it could be helpful to someone in the future. Caravana came yesterday. After a brief inspection (maybe 10 minutes), they agreed to their initial offer of 14.7k. I signed a purchase agreement, gave them a check for the negative equity (about 3k) and they loaded the vehicle up and drove off. Couldn't believe how easy that was!

 

Since the vehicle was financed (through Cap One), I want to wait until it shows as paid off and closed. I have another auto loan at the moment that I'm happy with. We'll use that for the time being. With my wife and I working from home, I am debating on waiting a while before getting another vehicle. But, if we want a new one, now may be the best time to do so based on incentives and the like. Either way, would it be best to wait for this loan to fully close? If I don't, I worry that it'll look as if I am seeking a third vehicle loan and my offers will reflect as such. Is there a way around that or is it best to just wait for it to update with the bureaus?

Message 10 of 14
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