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Can anyone help me get out of an upside down problem?

huh4huh4 Member Posts: 14
edited September 2015 in General
I owe $21k on a vehicle. It was valued at $20k by carmax and I did not take it. Then I had a bumper to bumper 1 mph accident in parking lot scratch. The idiot called the police so we both have accidents on our driving records and our vehicles.

Carfax says "Left Front Impact Collision"!!!!!!!!!!! Sounds so serious, my vehicle is now toxic. I was $1k upside down now it is much more.

The vehicle was repaired and looks great.

I have found some deals from Honda and Toyota dealers and I need advice.

Out the door prices including all taxes and fees and DMV and after paying off my vehicle in full:

1. 2016 Camry 4 cylinder XLE $25.5k MSRP $28,083.00
2. 2015 Camry 4 cylinder XLE $24.5k MSRP $27,923.00
3. 2015 Honda Accord LX $22k

Would I be in a better equity position doing these deals in your opinion? Most of these out the door prices have me paying invoice according to NADA.

I was preapproved for up to $26k at 1.99% for 60 months.

Thanks for helping!

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    steverstever Guest Posts: 52,454
    edited September 2015
    Why not keep driving your current vehicle? It sounds like you were shopping before the parking lot scrape so I guess you want something different?
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    huh4huh4 Member Posts: 14
    edited September 2015
    Mainly because I needed to get out of debt.

    If I need to get out of the debt, will these deals help me be less upside down?

    How much do you think a 2016 Toyota Camry XLE 4 cylinder is worth after you drive it off the lot?

    I wonder how much carmax would pay for it?

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    steverstever Guest Posts: 52,454
    Well, it's hard to buy yourself out of debt by upgrading to a new car.

    First year depreciation on a 2015 Camry XLE is $4,612. That's for twelve months - the initial depreciation isn't quite that bad. We don't have True Cost to Own numbers for the 2016 model yet.
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    MichaellMichaell Moderator Posts: 242,986
    If your current loan has a balance of $21K, and you are looking to buy a new car with a loan value of $22-25K, that's not helping you get out of debt.

    And - my guess is that the length of the current loan is less than the length of the new loan (60 months).

    My suggestion is to take the extra amount you would have been paying on the new loan and apply it to the current loan - that way, the loan gets paid off faster and you'll be upside down a shorter amount of time.

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    huh4huh4 Member Posts: 14
    edited September 2015
    That sounds very wise. my problem is I am 46, male and not sure why I bought a minivan. it is a 2014 sienna L with 7400 miles. it has a warranty until 75k bumper to bumper. I think i am having a mid life crisis and dont want to drive a minivan any longer. I am pretty sure I will regret trading it in but this carfax report is a real PITA. I almost traded it for a Camaro 1LT but decided a Camry was better for a family.
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    MichaellMichaell Moderator Posts: 242,986
    huh4 said:
    That sounds very wise. my problem is I am 46, male and not sure why I bought a minivan. it is a 2014 sienna L with 7400 miles. it has a warranty until 75k bumper to bumper. I think i am having a mid life crisis and dont want to drive a minivan any longer. I am pretty sure I will regret trading it in but this carfax report is a real PITA. I almost traded it for a Camaro 1LT but decided a Camry was better for a family.
    The carfax will always be there, whether you trade tomorrow or three years from now. 

    However, three years from now you'll be in a better equity position. This is a Toyota, and they hold their value extremely well. 

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

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