Trading in for lesser value when upside down

newwt86

Im asking how this would work or if it's even .
possible

I owe 26k on a vehicle that's worth just over 18k(nada trade in). Could I trade it in for a different car that has a sale price of 10k and drop my overall debt/payment?

Yes I know trade ins vary, but if so how would this work or what would it look like on paper?

thanks for any help

kyfdx

newwt86 said:

Im asking how this would work or if it's even .
possible

I owe 26k on a vehicle that's worth just over 18k(nada trade in). Could I trade it in for a different car that has a sale price of 10k and drop my overall debt/payment?

Yes I know trade ins vary, but if so how would this work or what would it look like on paper?

thanks for any help

You can't bury $8000 of negative equity on a $10K car..

On a new car, the banks allow the dealers to finance 130%-140% of MSRP, but on a used car, there is no way. And, if you could find someone to do it, it would be a sub-prime loan with an astronomical interest rate.

If you could do it, you'd have a 10K car with an $18K loan.. You wouldn't be much better off. Plus, you are selling your car for wholesale and paying retail for the next one... That spread alone eats up a lot of the savings.

If you are over-extended, cut elsewhere, until the car is paid off, or at least, right side up (which will be quite awhile, if it's $8K under water, now.)