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 help
I 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.
Steeler NYC you are on the money! I am less than 2 years away from paying off a very nice car and at one point wanted to trade and did walk away from a few deals and the main reason because it made no sense at all to keep carrying negative equity from car to car. I know we've beat this thread down but it is so true, you have to pay it down not trade it away. Like you stated or kind of, it's human implulse to buy on the dime! or trade on the dime! The subject is near and dear to me because i've made that mistake in the past and you never get from under unless you have some cash! There are dealers out there though that will make it happen with 6k under.