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Trading in for lesser value when upside down

newwt86newwt86 Member Posts: 5
edited September 2015 in General
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

Comments

  • kyfdxkyfdx Moderator Posts: 194,108
    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.)

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