At a loss - Auto Refi/Trade In

[Xistaben2]

I really am floored right now and I'm not sure if people are trying to screw me or maybe I'm just uneducated at what I'm trying to do.

I currently have a 2013 Ford F-150 XLT SuperCrew.  Has 8800 miles on it.  I am financed with Ally at 11.88%.  I can handle the payments just fine.

Needs are changing however and I will more than likely be moving much further from my job and I wanted something more fuel efficient.

Before I did anything, I pulled my FICO's from here - All 3.

EX - 628

TU - 671

EQ - 618

CC Util - 8%

Rehabbed student loan in repayment and is aging.

I financed my truck July 2013, perfect payments.  Had a previous loan from May 2012 to July 2013 perfect payments, then paid off. (trade in for the truck - 2k pos equity).

Currently owe 30,400 on the truck.  I know I have some neg equity coming.  Just getting feelers.

I bring my truck to Chevy to price out a Cruze diesel.  They appraise it no obligation and they offer me 23k for the truck.  I laugh in the dudes face and walk out.  I go to CarMax like people suggest here, have it appraised no obligation.  While they appraise it, I take a look around the lot at their BMW's.  Always wanted one and some were reasonably priced.  A 2011 BMW 335d with 50k miles on it catches my eye.  They are asking 26.9k for it, fully loaded, turbo diesel engine.  I test drive it, awesome car.

After the short bit of fun in test driving, they come back with the appraisel - 24k... ... .. .. . .  No go.  With that kind of neg equity, I won't get a better interest rate than what I have now.  Had them print me up a buy order for the BMW.  32.4k OTD with my 2k down payment, vallorum refund, TTT and neg equity in the truck.  Had them run credit, got 3 offers back - all with an interest rate similiar to my current one.  No thanks - told the dude, release the hold on the BMW, put it back on the market, you guys are jerking me around (for effect really, I half expected this result anyways).

In the meantime, I applied for a refi with Wells Fargo on a better interest rate for the truck.  Did this BEFORE going to Carmax.  Underwriting calls me this morning, goes over a few things.  Only offer he could give me would be no better than my current interest rate.  Thanked him and passed of course.

My questions from this experience - 

Ran Edmunds and KBB on my truck.  Now I know this is not by any means the golden book on appraisel, but KBB puts my truck, my options, trade in at 28k.  Edmunds BASE average is 28k, with my options, 30k.  Even if these numbers are skewed, how in gods name does Chevy and Carmax figure 23k and 24k?

When I bought my truck, Ally picked me up at an 11.88% APR when my scores were 535, 567 and 589.  Now with the scores above, nearly 100points better, longer auto loan history, I can't get below an 11.88 for a new loan OR Refi?

Am I missing something here?  My goal is to either get out from under this truck, into something with better fuel economy by either trading it in for what I want, or refi it for a better interest rate and use my 2k, maybe a little more and buy a beater early 2000's honda outright.

Not sure what my next move is, if any.

[PrimeRate]

Not sure if you're a member of a Credit Union, but if you are speak to them about a new loan or refi - if not check out DCU or if you have military connections via direct family members - check out NFCU. Sorry you're in such a bind. Been there done that with expensive cars & high interest rates. Such a headache.

[SamsungHDTV]

If you trade it in any where, you will get ripped. When you buy a car, because its a depreciating asset, you always want to keep forever. Dealers are in the business to buy cars low and sell high. So they want to make money on the buy, in your case about $4K-6K. And then they will put the list price probably $30K+ (26-45% mark-up ). They lowball you because most people will negotiate a higher buy price. Some just accept the first offer and get ripped.

If you want to sell your truck, consider selling private party. You should be able to get closer to your value, and for sure more than an dealer offer.

Try refi with a credit unions. Although if you have neg equity it may be an issue and perhaps why your rate is higher. Big banks are usually not rate friendly especially if you have any neg marks on credit report even if they're old.

Buy a beater to get around, early honda is great choice. Just hope that you get one that runs well, otherwise you might be putting more money into repairs. I have a '98 that runs perfect. Not selling though lol. If you go new, the newer accords are so nice. Lots of features and great gas mileage.

[Remember0]

Here's the issue: you can't refi a car with that much negative unless you come up with money.

Also you're expecting dealers to give you a high price on your trade, but let you buy for lower than retail price? Honestly, new cars have a lot of depreciation... Dealers are out to make the most profit they can. When yoiu say KBB says 28k, in what condition are you talking about? Dealers often don't get much more than Very Good Trade-In for a car at auction. Why pay more for yours than what they can just buy at auction. Honestly, 24k might be a tad low, but it's not more than 1-2k off. The dealer, I'd argue, is fine offering 1-2k less than auction value to hedge their risk that it auctions for a low price.

If you want to get out eventually, I think the best idea is to try and send extra principle payments every month to reduce interest and principle.

[Creditaddict]

In my experience Carmax really gives best no hassle trade in price if you don't want to mess with selling yourself, if you even can.... They basically giving you "Wholesale" pricing... meaning the average of what cars like yours are going through the auction for in the last week.

Before I early turned in my Infiniti I took it to carmax but didn't have a way to pay the negative equity... it went through auction less than a month later for $300 less than what CarMax offered to buy it from me for!!

On the flip side, they usually sell cars for less then the same book that you are trying to use for the value of your truck.

and sorry to say, fords don't hold value which is more salt to the wound when you have a not so great interest rate and purchased it brand new.

[StartingOver10]

OP, all the above posts are right.

The auto dealers are in it to make money.

How they do that is buy your car low and sell it for much higher. I know it sounds obvious. But when you walk into a dealership and expect 'fairness' you are expecting the impossible. All you can do is make sure that the deal you make is acceptable to you and hedge your bet by financing through a CU. Don't trade - ever. It is one of the ways that dealerships make it on both ends - your trade in is low and the purchase is high. You do much better by selling your own vehicle yourself and not messing with a trade.

As pointed out, Carmax gives you essentially a wholesale rate with the least amount of hassel. If you want to get anywhere close to retail value (KBB or NADA) then you need to go through the time and trouble to sell it yourself privately.

CU's will give you the very best interest rate when you refi. In fact, if you get in the habit of financing with a CU you will see the rate and terms are much better than through a dealership except in very narrow circumstances.

You did the right thing by walking away from the deals offered to you. There are those that fall for those types of deals and live to regret it.

See what you can do to come up with the negative equity difference and sell your car privately so you can start fresh with your new purchase