Need a little help

[CyphaSoundz]

I have a 2021 Tesla Model Y. I bought it used. I owe about 80k on it due to a Jeep I bought 3 years ago. That negative equity has been following me. Unfortunately I need to get rid of the Tesla due to a child support bill coming my way. It looks like I'm going to have at least 10k in negative equity. Can I trade my car in for a truck or something? Would dealers be able to work with me?

[disdreamin]

I was just looking at Tesla's and I though the Y only ran about $65 or so. That's a lot of negative equity that will need to be rolled into a new vehicle. I'm wondering if you try going with a less expensive vehicle whether you're going to have difficulty with LTV when trying to secure financing. As far as trucks, most new full-size trucks are somewhere in the $45-60k+ range and fuel costs will be significant, especially compared to the Tesla. I can't imagine that saving you much in the end, if anything.

I'll be following to see what those with a strong knowledge of finance and auto loans have to say about this situation.

[CyphaSoundz]

looking at a used truck maybe around the 47k-50k range. The Model Y Performance holds its value very well. It's still worth 62-65k used. I'm not concerned about gas prices right now. I need to get rid of that payment. I need to get under 1k. I know it won't be pretty but I'd be saving a lot of money between the car note and insurance. 

[disdreamin]

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@CyphaSoundz wrote:

looking at a used truck maybe around the 47k-50k range. The Model Y Performance holds its value very well. It's still worth 62-65k used. I'm not concerned about gas prices right now. I need to get rid of that payment. I need to get under 1k. I know it won't be pretty but I'd be saving a lot of money between the car note and insurance. 

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If you're trading in a car worth $65k on an $80k loan and rolling that $15k in negative equity into a used vehicle that costs $45k you're still looking at a loan for $60k but now it's on a used vehicle and I think those loans typically have higher interest rates. Is that really going to get you to the payment amount you need it to? Many of those trucks will get - at best - 20mpg, so it's also worthwhile to factor in your monthly mileage/fuel cost and what that is going to add to your monthly out-of-pocket.

For what it's worth, this is really not the best time to shop for a used truck. I spent months earlier this year researching and purchasing a new truck. After spending time on way too many forums, it's a fact that late model used trucks in the price range you are mentioning are often more expensive than a brand new truck - crazy but true. A lot of people were trading in one- and two-year old trucks for a new one and breaking even or even netting a bit of cash back. As an example, I just ran the truck I purchased for $47.5k in July and threw 10k miles on it for a kbb estimated used truck price and it comes back $46.5-49.5k for trade-in, private party sale is $49.5-52.6k. You'd probably be better off ordering a new truck, especially if there are finance incentives being offered.

[WhatTickaWhat]

Do the math on paper....you will get your answer.

Dealers will make it work, esp in their favor, not yours.

Good Luck

[Loquat]

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@WhatTickaWhat wrote:

Do the math on paper....you will get your answer.

Dealers will make it work, esp in their favor, not yours.

Good Luck

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@WhatTickaWhat Let's remember that we treat each other with respect here on the forum.  You can choose not to reply to a given thread.  I appreciate your understanding.