Negative Equity 7k

[lto76]

hello all

I currently have negative equity.  I want to get a new car.  I spoke to a dealer already adn they told me I can get out of it but they have a better chance if I get a brand new vehicle.  I currently have a GMC Terrain 2011 that I have for a year already.  I do not like the way it drives. If I get a new car my car payment will be much higher.  I do not want to pay a higher car note.  My payment will be 200 higher.  I plan on putting down 1500.  Now because my payment will be 200 higher it does not make sense for me to pay that much for a Ford.  I am wondering what my other options are.  Should I just continue to drive a car I don't like?  Should I try to lease and would I be able to do that with negative equity?  Should I just wait until the end of the end and make extra payment and try to trade my vehicle in?

Please tell me what you think the best thing for me to do?

Thanks in advance

[E150GT]

cheaper to keep her... Sometimes its just life to drive a car you dont like. Maybe since you dont like driving it, you can only drive if absolutely necessary to drive and save a few bucks from gas and start to rapidly pay down the prinicipal. I guess it really wouldnt be any different than financing the negative equity but its not a good thing to owe more than your car is worth as some punk can total your car and youll be stuck paying for the negative equity on the old car and the new car and you wont even have the car!!!I It can start a downward spiral financially that I would try to avoid. Just my opinion.

[SamsungHDTV]

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@E150GT wrote:

cheaper to keep her... Sometimes its just life to drive a car you dont like. Maybe since you dont like driving it, you can only drive if absolutely necessary to drive and save a few bucks from gas and start to rapidly pay down the prinicipal. I guess it really wouldnt be any different than financing the negative equity but its not a good thing to owe more than your car is worth as some punk can total your car and youll be stuck paying for the negative equity on the old car and the new car and you wont even have the car!!!I It can start a downward spiral financially that I would try to avoid. Just my opinion.

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+1 cheaper to keep her.

[Robertwd82]

You can get into a used car but that used car needs to be priced well below wholesale value.  Car guys call it"back of book". Certain cars on the used car market are soft, meaning they dont really sell for as much as the blue book values think they should be selling for.  Usually they are SUVs, especially when the gas prices go up, but can be any vehicle if the dealer bought it at a good price.

what kind of vehicle do you want?

With 7k negative equity I would be looking for the dealer who doesnt mind over extending the amount they will give you for your car in order to make the deal.  A lease may be easier to get into because of the payment.  Your other option is to wait for when the new models come out and they have big rebates on last years models.  The rebate will help with the negative equity and the dealer still has the profit built into the msrp to absorb the negative equity(they lower the price of the car or you negotiate the price) so the loan to value ratio(ltv) is in line with the financing requirements.  

[thirst305]

Is the -7,000 equity calculated using the trade-in value?  If so, consider selling it yourself to see if you can get it closer to what you currently own.  Upon selling it, you can go about buying a different car, perhaps one that is cheaper so your payments are lower.