Negative Equity, want to trade in soon. Need Advice.

[uojoe82]

Heres my situation;

Currently have a 2009 Altima with 108K miles on it. I owe $9k on it still to Cap One at 14.9% interest. I want to upgrade my vehicle (newer, less miles).

I live in Oregon where there is no sales tax. In 5 months ill be moving to CA (where there is sales tax). My credit scores are weak however I was able to get financing 3 years ago when my scores were a lot worse. My transunion is 595 but Im certain my auto FICO scores are much better due to my 3 year car payment history. 

My ideal scenario would be to trade in my vehicle and roll up my negative equity into a a newer used vehicle. I'm sure ill have about $2k in negative equity. I want to do this while I still live in Oregon so I dont have to pay sales tax in CA. 

Anyone have any input on what financial institution to apply to? Id like to get a certified pre owned Toyota for around $20K (plus another $2K for my negative equity).

Your help is appreciated.

[Luscher]

Generally we to try to shy away from rolling your negative equity into a new loan, so only do it if you have to. I would say just continue to pay off the car and drive it till it dies.

[nathan]

Look for cars that have rebates and you could knock out the negative equity. The only problem could be your scores, but finance managers are known to do magic sometimes. 

[Creditaddict]

If you are going right to a toyota dealership you should be able to get financed, if you have been paying this car on time for 3 years your auto enhanced score might be quite a bit higher then your fico that you are getting at 595.

and since you are not paying sales tax it's kind of like swapping your negative equity into your loan instead of tax... of course would be better if you could put that as down payment but can probalby roll it in just fine.

[Remember0]

With a 600s auto enhanced, you could try Capital One maybe. BofA might work esp. if auto enhanced ends up being > 650ish.

Also I personally think you'll have more like 3k in negative when all is said and done. Get your car appraised at Carmax first before accepting a dealer's trade offer. Ultimately a lot will depend on your down payment available and the new vehicle you want?

[NotTellinYou]

Is your current car giving you any problems? I think your trade in value is a lot less. But bigger concern is the idea that would would take on more debt now, at a high rate, to save on sales tax, seems less than ideal. Why not a lower mileage $10k car? Your car with 1/2 the mileage for example? Well good luck!