Whatever you do, don't roll one upside down car into another car you will be accumulating a lot of debt that will take you forever to pay off.
You need to work on paying down the principal on the loan you currently have. Paying the regular payment is going to do that very slowly since it's mostly interest, especially at the beginning of the loan. If you can add an extra $100 or so every month to your payment that will help you out a lot and you can get out of the vehicle sooner.
You can also try to see what you could sell the car for private party since it will likely be much higher than any dealer would offer a trade in for.
@Anonymous wrote:
@Anonymous wrote:
I financed a 2012 Veloster late 2015. I had no credit history yet that time so I had a co signer help me. I have been trying to refinance my car loan at a 1 year and 9 month credit history, but I can't seem to get approved. I want to trade in my car but I would be upside down 6k since the trade in value is only 6k and I have a 12k balance left. I've been dying to get s2000 but with this upside down balance it's making things harder. It affects me everyday thinking about the car I really want. Could anyone give me any advice on how to get through this balance and being upside down if I do a trade in? I don't have 6k.. my score is 701 now after all the inquiries. I recently opened up 2 extra credit cards, totalling of 3 credit cards now. Capital one increased my credit limit recently. I am in desperate need of advice to see what I can do. My income is about 3k monthly but of course like anyone else, I have bills. Please helpI would learn to love the car you have because there is no way to make that 6k disappear, some trade in cars in this situation for something new with a large rebate to make it a wash or closer to a wash but of course there is no rebate on an S2000. My suggestion is to make double payments on the current car (if you can) until that negative equity is eliminated, have the second payment amount applied to principle. When you buy any car you are likley to have negative equity for at least 3 years so don't ever buy anything you cannot live with for 4-5 years. The S2000 is a want not a need, I am a car guy also so I understand its tough to differientiate because of the passion but don't compromise yourself financially long term over something like this. Keep your credit clean and work your way down the current loan and you'll be in a great position to pick up the dream car before you know it.
The only vehicle I know of right now that can wash away 6K of negative equity is the Hyundai Sonata, but you have to buy a Limited or 2.0T trim to get the full 6K rebate.
Hyundai values tank really quickly though, especially with the manufacturer knocking 6K off the MSRP. You'd better be happy with it for the life of the loan if you wanted to go that route.
