Trade in VS Selling - negative equity

[Anonymous]

I currently am upside down on my vehicle on which I owe about $23k. (I bought it new, put down $1,500 but had $3k negative equity on previous trade, and financed the TT&L). 

I've been told trade-in value is about $15-16k, but I have an offer to sell it for $18k.  

Would it be better to A) trade it in and roll in the negative equity once again, or B) sell it and pay off the remaining $5k with either a personal loan or 0% CC?  I'd continue to make the same payment toward that balance, while sharing our other vehicle until I find something else.

ETA my current interest rate is 2.9%.

[Horseshoez]

If your current interest rate is relatively low, I'd recommend you just pay it off over time, or at least pay it down until you have some equity in the vehicle.  

[Anonymous]

---

@Horseshoez wrote:

If your current interest rate is relatively low, I'd recommend you just pay it off over time, or at least pay it down until you have some equity in the vehicle.  

---

The reason I'm looking into this is because my current vehicle is now too small for our whole family, so will be needing something sooner than later.

[RSX]

i would say that since you have already traded in one vehicle with negative equity, you shouldn't do it for a second time with the current one

(it does happen sometimes, but you don't want it to be a pattern)

unless it is a job related vehicle change, i would keep it until you can at least break even, before thinking about buying another one

[Anonymous]

---

@RSX wrote:

i would say that since you have already traded in one vehicle with negative equity, you shouldn't do it for a second time with the current one

(it does happen sometimes, but you don't want it to be a pattern)

unless it is a job related vehicle change, i would keep it until you can at least break even, before thinking about buying another one

---

Not job-related, but family related.  Doesn't fit everyone (new baby).

[incognitony]

Check Carvana and Carmax offers on the old car. You may be able to bury negative equity in a new vehicle depending on how picky you are about the brand. Maybe some rebates and good negotiations would cover up the negative equity

[Horseshoez]

---

@Anonymous wrote:

---

@Horseshoez wrote:

If your current interest rate is relatively low, I'd recommend you just pay it off over time, or at least pay it down until you have some equity in the vehicle.  

---

The reason I'm looking into this is because my current vehicle is now too small for our whole family, so will be needing something sooner than later.

---

---

@Anonymous wrote:

---

---

Not job-related, but family related.  Doesn't fit everyone (new baby).

---

Ahhh, that makes sense.  The one time in my life where I rolled negative equity from one car into another was for the same exact reason.  Back in 1993 I shopped a bunch of sporty little two door cars and ended up buying a 1993 Ford Probe GT 5-Speed, that sweet Mazda V6 was a literal work of art.  Unfortunately the day after I picked the car up I found out my wife was pregnant; oy-vey.

Fast forward about 20 months and there was no way a forward facing car seat for my growing toddler would fit in the back of the car and still leave enough room for my small wife to fit in the front seat.  A brand spankin' new 1995 VW Passat GLX 5-Speed solved that problem.

In the end I kept the Passat for just over 4-years, long enough to pay off the rolled together car loan and move on to a 1999 328i (also a 5-Speed). 

[incognitony]

---

@Horseshoez wrote:

---

@Anonymous wrote:

---

@Horseshoez wrote:

If your current interest rate is relatively low, I'd recommend you just pay it off over time, or at least pay it down until you have some equity in the vehicle.  

---

The reason I'm looking into this is because my current vehicle is now too small for our whole family, so will be needing something sooner than later.

---

---

@Anonymous wrote:

---

---

Not job-related, but family related.  Doesn't fit everyone (new baby).

---

Ahhh, that makes sense.  The one time in my life where I rolled negative equity from one car into another was for the same exact reason.  Back in 1993 I shopped a bunch of sporty little two door cars and ended up buying a 1993 Ford Probe GT 5-Speed, that sweet Mazda V6 was a literal work of art.  Unfortunately the day after I picked the car up I found out my wife was pregnant; oy-vey.

Fast forward about 20 months and there was no way a forward facing car seat for my growing toddler would fit in the back of the car and still leave enough room for my small wife to fit in the front seat.  A brand spankin' new 1995 VW Passat GLX 5-Speed solved that problem.

In the end I kept the Passat for just over 4-years, long enough to pay off the rolled together car loan and move on to a 1999 328i (also a 5-Speed). 

---

Ah. memories. I had a 95 Ford Ranger I bought when I was single. By 98 was married with a kid and with a baby seat could not shift into 2nd, 4th or reverse. Ended up with a Grand Am that was the only manual car on the lot. I did ride with a guy that had a Probe and those were quick for that time. 

[Anonymous]

---

@incognitony wrote:

Check Carvana and Carmax offers on the old car. You may be able to bury negative equity in a new vehicle depending on how picky you are about the brand. Maybe some rebates and good negotiations would cover up the negative equity

---

Carvana is the $18k offer. Local dealers will only give me $15-16k. 
and I'm not sure anything new would work, because seems like anything new with a 3rd row seat is $50k+ anymore lol. 

[incognitony]

---

@Anonymous wrote:

---

@incognitony wrote:

Check Carvana and Carmax offers on the old car. You may be able to bury negative equity in a new vehicle depending on how picky you are about the brand. Maybe some rebates and good negotiations would cover up the negative equity

---

Carvana is the $18k offer. Local dealers will only give me $15-16k. 
and I'm not sure anything new would work, because seems like anything new with a 3rd row seat is $50k+ anymore lol. 

---

I think maybe some deals are available on left over 2020 Pacificas, Acadias, and the Enclaves. On the flip side, Carvana will let you roll 2500 negative equity into a trade. They have high prices but the used market is crazy now. They also would probably kill you with interest compared to what you're paying now. Short of finding a cheap minivan or suv for a temporary fix as a 2nd car, I can't think of any other solutions. I hope it works out for you.