@Anonymous wrote:
@Anonymous wrote:
I traded a car that I was 7k neg on. The car I bought came with a 2500$ rebate which went toward my negative equity but I still rolled in 5k neg equity and the lender financed 100%. I got stuck with a high interest rate tho but probably because my scores were lower than yours are now. I would start by looking for a vehicle that has a nice rebate to offset some of your neg. and then give it a shot.
Doesn't matter if vehicle have nice rebate. Most likely just mean after u buy that vehicle. That vehicle will lose value fast too
That isn't necessarily true. If you can manage to find a vehicle that traditionally holds its value well, and still manage to get a good rate and decent discount off msrp, you can improve a negative equity situation fairly well. (As long as your scores are decent.)
I remember I had a 2009 gti i bought that was CPO'd. I had about 7-8k in negative equity in it. I managed to purchase a 2010 honda fit sport, and the delaer was able to sell it to me for about 1500 off invoice. I got approved (with a co signer) for honda's special financing, which at that point was 0.9% for 60 months. After about 3 years, my cars value, despite having been saddled with negative equity, had finally panned out, and I owed roughly what a dealer was willing to give me on trade.
Granted, Honda fits were in higher demand then, and the fact that most of my payments went towards principle were obvious factors...as was the fact that honda's hold their value well.
It isnt impossible, its just very difficult to do. And usually requires decent credit. Refinancing a car, especially one that you have negative equity in is a difficult proposition, when banks seem to be totally fine with denying refi's because of mileage or age, but are totally ok endebting people for 6 years.
