This is just going to be some suggestions, please don't take them the wrong way.
Is there some reason you need the RR right now? Financially from what you describe that's just not in the cards and that's an expensive vehicle. That's a lot of miles on a 2 year old car to be sure but if it's still servicable you should continue to drive it for now or look at picking up a beater for a few thousand cash and drive that while still making payments till you can get out from under it.
What is your APR on the Jeep and why haven't you already refinanced it as you at least intimate in your post that your scores have improved over where they were two years ago... there are still sweetheart APR's being offered by CU's, I'd make friends with one (either a good one locally or either DCU or Penfed are quality choices here on the forum) and refinance the loan to get it paid down more quickly. I'm not surprised you're underwater with the mileage but since it's already depreciated so much the Jeep won't be as expensive per mile from here on out at least.
If you're shopping for a Range Rover I'm going to guess your income is fine you just have a short-term cash shortfall? IF that's not the case you would be doing yourself a tremendous favor by doing a budget and seeing where you're at... I make decent money (~150K) and have no debts other than a mortgage and 10K I ran up on my most recent educational fiasco (which I could write a check for but at 3.25% /shrug) and am about to get 50% of my life (or more) entirely paid for working a travel gig, and a RR is out of my realistic price range starting at what 84K MSRP and moving up into Tesla territory?
A basic car is pretty much a need, a RR is clearly luxury that can be cut is my thinking... and if you're not in a place where you can drop 15k I'd strongly suggest reconsidering it.
Right on, let us know how the refinance goes!
@Anonymous wrote:I went to the dealership yesterday to trade in my 2014 Jeep with approx 91k miles because I wanted to purchase a used Range Rover. When I purchased the vehicle about 2 years ago, I was in a desperate situation and I needed a vehicle quickly. My credit score was probably not even 600 so I got an extremely high interest rate. Tough lesson learned.....
I called Capital One and they told me that I owed $30k on the vehicle. The salesman told me my trade in value was only $15k. He had a few suggestions for me.
Option 1 - Pay the $15k that I was upside down (which I didn't have!) and then purchase the RR
Option 2 - Come back to the dealership with a cosigner that didn't have a car loan and pay a $2-$3k down payment and don't trade in the vehicle
I told him that in I did Option 2, how would that benefit me because I would have 2 car payments. He suggested that I could sell it or do a voluntary repo. No way could I sell it for $30k with a $15k value. Carmax gave me a quote of $20,000.
Right now , I don't know what to do. I don't have $15k and I don't want to do a voluntary repo. My TU credit score is low 600s and I don't want my credit score to drop because of a voluntary repo. Does anybody have any suggestions what to do when you are upside down this much?
TIA
I think you should
(a) forget about buying anything,
(b) keep paying the Jeep down, accelerating the payments
@Anonymous wrote:Thank you for suggestions.
I don't need the RR now...just wanted it. I think the APR on the Jeep was around 12% I am a member of a credit union and I will contact them for a refinance. Wish I would have done the refinance months ago......
I need to focus on getting this Jeep paid off as quickly as possible and not make the same mistake again when it is time to purchase a new vehicle.
Thx
If you keep making payments your score will improve.
But if you refinance your score will drop.
@SouthJamaica wrote:
@Anonymous wrote:Thank you for suggestions.
I don't need the RR now...just wanted it. I think the APR on the Jeep was around 12% I am a member of a credit union and I will contact them for a refinance. Wish I would have done the refinance months ago......
I need to focus on getting this Jeep paid off as quickly as possible and not make the same mistake again when it is time to purchase a new vehicle.
Thx
If you keep making payments your score will improve.
But if you refinance your score will drop.
Getting out of debt faster is more important than short term drops in score: that's what credit is for actually, saving or making money thereby putting yourself in a better financial situation: an 850 score even is worthless if you don't use it.
That can all be fixed with a share secured loan anyway after the car is paid off. Right now it's a boat anchor financially, and that needs to get fixed. And actually being 15K upside down on an auto loan, quite likely we're not talking major drop anyway... handful of points at most, if that.