Another dreaded negative equity thread

[Cellice]

I think you are underestimating how much the negative equity will add to your payments on a monthly basis.

$9000/36 is already an extra $250 a month

That does not take into account the interest charged on that $250. That will likely add $25 to $50

Honda is very strict on their lending. Your wife will likely need to co-sign for you.

I also suspect they will ask for a downpayment because you'll be above the normal 120% value.

Also, dealership will likely give you way less than NADA. They cant sell TDIs. They dont want them. Find a dealership that has a VW department attached to it maybe?

[exCYter]

Nothing to add other than i feel your pain.  I bought a used 2012 Jetta TDI in 2014 for $18k.  Had initial terrible interest rate of 16%, refi'd that six months ago for 6.5%.  I have paid ahead every single month and have brought down my balance to 11k--should be in great shape right?   Of course VW decided to cheat and the value of the car has plummeted from about $14.5k six mos ago, to around $9k today.  

Feels like I can't catch a break!

[Dj4Money]

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@exCYter wrote:

Nothing to add other than i feel your pain.  I bought a used 2012 Jetta TDI in 2014 for $18k.  Had initial terrible interest rate of 16%, refi'd that six months ago for 6.5%.  I have paid ahead every single month and have brought down my balance to 11k--should be in great shape right?   Of course VW decided to cheat and the value of the car has plummeted from about $14.5k six mos ago, to around $9k today.  

Feels like I can't catch a break!

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 Hold onto it because VW will start bailing owners out here pretty soon. I won't call it Gate because everybody does it, but the Diesel issue also means that GTI's can be had for bargin prices! 

[Anonymous]

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@Cellice wrote:

I think you are underestimating how much the negative equity will add to your payments on a monthly basis.

$9000/36 is already an extra $250 a month

That does not take into account the interest charged on that $250. That will likely add $25 to $50

Honda is very strict on their lending. Your wife will likely need to co-sign for you.

I also suspect they will ask for a downpayment because you'll be above the normal 120% value.

Also, dealership will likely give you way less than NADA. They cant sell TDIs. They dont want them. Find a dealership that has a VW department attached to it maybe?

my VW isn't a tdi. Its a tsi gasoline turbo. If i had a TDI, i wouldn't even bother, because you're right, no one wants them. Such a shame. They are fantastic cars and they used to hold their value pretty damn well.

You're right about the leasing. I know she' d have to sign with me, but at this point, its a better deal to just either pay her down more or find a dealer willing to offer a decent chunk off of msrp and get financing beforehand

[Anonymous]

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@exCYter wrote:

Nothing to add other than i feel your pain.  I bought a used 2012 Jetta TDI in 2014 for $18k.  Had initial terrible interest rate of 16%, refi'd that six months ago for 6.5%.  I have paid ahead every single month and have brought down my balance to 11k--should be in great shape right?   Of course VW decided to cheat and the value of the car has plummeted from about $14.5k six mos ago, to around $9k today.  

Feels like I can't catch a break!

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Yeah it sucks. Granted, you're in a pickle that involves and actual TDI, so like others have said, VW is probably going to come around for ya. But in my case, i'd argue i'm even worse off, since my car technically isn't 'affected' by the emissions scandal.

But its gulty by association haha.

[Cellice]

Yeah, I just leased a 2016 GTI for almost 5k off.

[Cellice]

You also lost value because a new generation of Golf came out. Its not 100% the Diesel scandal. VW has always had low resale value.

[Anonymous]

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@Cellice wrote:

You also lost value because a new generation of Golf came out. Its not 100% the Diesel scandal. VW has always had low resale value.

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Congrats on the new GTI! 

My Generation Golf, the mk7, IS the new Gen. I'd hate to know what my numbers would look like if I had the previous gen, which stopped being sold in the states as a 2014 model. 

Yeah vw's have never been great, though they seem to do better than most of the domestic makes. Def not as good as something like a honda or toyota, despite those being a dime a dozen.

[Cellice]

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@Anonymous wrote:

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@Cellice wrote:

You also lost value because a new generation of Golf came out. Its not 100% the Diesel scandal. VW has always had low resale value.

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Congrats on the new GTI! 

My Generation Golf, the mk7, IS the new Gen. I'd hate to know what my numbers would look like if I had the previous gen, which stopped being sold in the states as a 2014 model. 

Yeah vw's have never been great, though they seem to do better than most of the domestic makes. Def not as good as something like a honda or toyota, despite those being a dime a dozen.

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I missed that detail. You have a great car. Keep it!