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When Rolling In Negative Equity is a Necessity

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Anonymous
Not applicable

When Rolling In Negative Equity is a Necessity

Just did it!

I bought a new 2008 for $2k Under INVOICE and took advantage of the $2k rebate....They originally offered me $13,200 for the car, but I took my keys and was quite seriously walking, then the guy came back.....says he called the "big bosses" who gave me the $17K I was looking for.

Walked out with a monthly payment less than I was currently paying and a new vehicle with more bells and whistles than my Xterra!

Take this with a grain of salt....I have no credit card debt, but I seem to have a new car buying obsession. Luckily I can afford it!

Message Edited by 1111mel on 09-07-2008 08:58 PM
Message 1 of 12
11 REPLIES 11
Schoolbuskid
Valued Contributor

Re: When Rolling In Negative Equity is a Necessity

What did you buy mel? If you dont mind me asking!
Rebuilding and Reducing Debt, is my game plan.
Message 2 of 12
Anonymous
Not applicable

Re: When Rolling In Negative Equity is a Necessity

I got a Kia Sportage EX with leather interior and a great stereo.

I love it, the only thing that bothers me about the contract that I forgot to look at before signing is where it says

"If you pay all that you owe early, you will not have to pay a penalty."

This makes me queezy, but it is a simple interest loan so you I am sure a person can't be forced to pay more Interest than what is accrued....Any how it goes to show that it doesn't matter how many times you buy a car there is always a chance that you forget to check something you know you are supposed to!

Message Edited by 1111mel on 09-08-2008 04:49 PM
Message 3 of 12
Tons_of_Debt
Established Contributor

Re: When Rolling In Negative Equity is a Necessity

Congrats on the new car! What were you trading in?
08/01/2008 - 472 EQ; 523 TU; 454 EX
03/01/2009 - 574 EQ
08/08/2009 - 648 EQ
01/27/2010 - 671 EQ
07/04/2010 - 713 EQ
01/05/2011 - 730 EQ
05/14/16 - 762 EX
Message 4 of 12
Anonymous
Not applicable

Re: When Rolling In Negative Equity is a Necessity

many years ago I had a auto loan that I still had to pay all the interest if it was paid off early or not- (young and dumb)
 
I think this verbage is required -

1111mel wrote:
I got a Kia Sportage EX with leather interior and a great stereo.

I love it, the only thing that bothers me about the contract that I forgot to look at before signing is where it says

"If you pay all that you owe early, you will not have to pay a penalty."

This makes me queezy, but it is a simple interest loan so you I am sure a person can't be forced to pay more Interest than what is accrued....Any how it goes to show that it doesn't matter how many times you buy a car there is always a chance that you forget to check something you know you are supposed to!

Message Edited by 1111mel on 09-08-2008 04:49 PM


Message 5 of 12
Anonymous
Not applicable

Re: When Rolling In Negative Equity is a Necessity

Thanks Timothy!

Luckily the back of the contract explained that a payment first goes to the interest that has been "accrued" and then to the principle.....

I was a bit nervous for a few hours though!

I traded in my Xterra....It was stick shift and in moving to a town with rolling hills and horrific traffic it made driving a nightmare.
Message 6 of 12
Jayroc80
Established Member

Re: When Rolling In Negative Equity is a Necessity



1111mel wrote:
Just did it!

I bought a new 2008 for $2k Under INVOICE and took advantage of the $2k rebate....They originally offered me $13,200 for the car, but I took my keys and was quite seriously walking, then the guy came back.....says he called the "big bosses" who gave me the $17K I was looking for.

Walked out with a monthly payment less than I was currently paying and a new vehicle with more bells and whistles than my Xterra!

Take this with a grain of salt....I have no credit card debt, but I seem to have a new car buying obsession. Luckily I can afford it!

Message Edited by 1111mel on 09-07-2008 08:58 PM

Congrats on the new car!!
 
However, you may find yourself in another bad situation 2-4 years down the road with a new Kia.  2 years ago I traded in my 2002 Chevy TrailBlazer for a new 2006 Kia Sorento.  The car was valued at $21,000.00 dollars and this year when I traded for 2008 Lexus IS 250, the value of the Kia had dropped to $8,500.00, and the Kia was in great condition, with only 20,000 miles on it.  The depreciation made my stomach hurt and I had to end up rolling negative equity into my Lexus, but I also signed a lease which helps that whole situation.
 
Had I did my research to see that Kia had horrible resale values, I would have tried to buy a car with a better resale value or opted for a used car that I could've paid off.
 
I wish you the best with your new purchase, because my Kia Sorento was a great vehicle, with the only issue of lost equity.
 

 
TU - 530, EX - 595, EQ - 580 10-13-2007
TU - 623, EX - 637, EQ - 648 4-25-2008
TU - 623, EX - 655, EQ - 630 5-19-2008
Message 7 of 12
Anonymous
Not applicable

Re: When Rolling In Negative Equity is a Necessity

I expected that....I once had a Hyundai that went in the crapper for resale value too....but I plan on keeping this one and paying it off within 3 years.
 
Funny thing.... I just went to pick up my plates today and they had just sold my Xterra that I traded in.  They gave me $16K Trade In for it and sold it for $16K. SUCKERS!
Message 8 of 12
Miner
Frequent Contributor

Re: When Rolling In Negative Equity is a Necessity

SUV's have dropped a lot in value the past 2 years due to higher gas prices and people actually wanting high MPG cars.  After paying off my previous 5 year loan on my car, I had been wanting to add a SUV to my garage (mine actually leaves the pavement unlike 80% of them).  I picked up a 27 month old 2005 Chevy Trailblazer with 26K miles from a nohaggle lot about a year ago that had been marked down 3 seperate times by a $1k each time (I worked near the lot) over a period of 3 months.  If I had waited another 6months, I think I could have found something similar for even less money.  I certainly could have bought new for a huge discount.  It's been a great time to buy SUVs, but a terrible time to sell them.
 
If you are going to buy a car and dump it within 2 years, you should be looking at leasing it rather then buying anyway since cars take a huge resell hit as soon as you leave the lot.  Buying only works if you plan on keeping the car awhile and taking a 6yr loan is just asking for negative equitty for most of the life of the loan.  I personally tend to buy cars to keep and almost run them into the ground first (or until someone wrecks them) before replacing and often end up with two seperate vehicles.
 
 
Current FICO8: EQ:782, TU:754, EX:767 | 1x 30 day late 6yrs ago
AAoA: 10 years; AAoOA: 13 months; Credit Length: 21 years
INQ Eq: 3 / Tu: 5 (4 for auto) / Ex: 9 (5 for auto)
Message 9 of 12
Anonymous
Not applicable

Re: When Rolling In Negative Equity is a Necessity

Leasing is the BIGGEST mistake if I have ever heard of one....

When you look at leasing the fee is somewhere like $1,500 to $2,500 due at signing, $12K miles per year max and every penalty under the sun for any dings or scratches or overage miles...

Even if you sell every 2 years (which I don't suggest) It most likely is better to buy and sell. A lease is like an apartment, they nickel and dime you for every penny of damage.

Edited to say my Xterra MSRP was $24,500....the Invoice was $22,500.....I paid Invoice and took advantage of the $3K cash rebate.....so in essence I paid $19,500 and got rid of it 10 months later at $16K...in my book this gets a victory!!!

Message Edited by 1111mel on 09-26-2008 09:29 PM
Message 10 of 12
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