Owe more than it's worth... I'm upside down and I can't get up!

stickguy

Assuming it is really shot (although a good local mechanic can often patch it up for surprisingly little money), you don't have a lot of choices.

Sometimes if you can find a heavily subsidized lease you can trade it in on that. Same with something with a big rebate.

Might be best to figure out what you can live with (something basic), and look into the trade options. You can also pay off th enegative equity outside of the loan, unless you get a favorable interest rate.

This is a good example of why I would never borrow money on an older car. Maybe 2, 3 YO tops, but a long loan on an already old car? Bad idea.

steine13

I have been paying $175 a month on a 60 month loan.

That's the problem; you essentially put yourself in a 10-year car loan, only you're paying from year 5 to year 10. That's not gonna be event-free with an Explorer, so you need to bank money for that.

Not to rub it in, but your situation is nearly standard for people buying used with long loans.

Good luck,
-Mathias

metro123

I have never believed in the philosophy of pouring money into an old car. I would rather be upside down in a brand new car with warranty than throwing money into an older, high mileage car. Your situation is even worse because you are having to repair the car and make a payment.

I would trade the car in as is, take your lumps and move on. Get the extended warranty if you can and for goodness sakes, buy gap insurance !!

Good Luck

blueiedgod

I have been paying $175 a month on a 60 month loan

can't afford anything more than about $250 a month

Ok, you have been paying $175/month for the last 18 months, but you said your self that you can afford to pay $250/month.

Take that $75 difference ($250-$175) and set it aside every month. Over the remaining 42 months you will have $3150 saved up, plus any interest you accrue if you open a high yield savings account (5.05% APY) at HSBC, M&T, Citibank, ING, or Emigrant Direct.

Now, take the $1000 it would take to fix the Explorer out of this projected $3150 surplus, and you should have $2150 plus interest available to you should something go wrong in the future.

You could probably borrow the repair money from family or friends and then pay them back with the first few $75/month installments.

mookie14

I'm in a situation where I can roll over some neg equity on my '03 TBlazer - not a lot though!! I have no intentions of keeping this auto. I owe about $15000 and its worth $6000 now. I am paying about $650 a month. I'm thinking about paying all the way until Jun 08 to pay down the existing negative equity I have. There is about 101600 miles on the auto now. We estimate mileage to be about 117700 by June '08. Do you think between now and next year, will the value of the '03 TBlazer drop more than $2000?

cccompson

Are you asking if your '03 will be worth $4000 next June when its mileage is 117K? If so, yeah, probably (at least on a private party sale).

mookie14

Some if i am trading it in for another auto you think it will drop more huh? Private party is the only way to go you say.

sky23213

I guess you run the risk of posting on here seeing all you want is info...
What info? The writing is on the wall, and the previous poster kind of pointed it out. There was no reason for insults.

bdc2020

What I'm trying to say is this:

If you don't want a $650 car payment and do NOT want to be upside down *AGAIN* on your next car, sell you current car privately and buy something you can AFFORD!

You obviously can not afford the cars you are buying because you are upside down on them and have huge payments.

This applies to all posters on here asking for advice being upside down.

Buy within your means.

What about buying a USED Toyota Corolla or some other small car that will run forever??? That way you can pay off all your upside down debt and finally be car debt free.

But I'm sure it's more important to you and others here to be 'seen' driving something more "cool"?

british_rover

Buying something used like a Corolla or Civic that has stupendous resale value is actually a bad idea.

You are better off buying it new and taking advantage of the special financing typically offered on those cars. A corolla, civic, Tacoma, or accord just don't depreciate enough over time to really be worth buying used.

mac24

A corolla, civic, Tacoma, or accord just don't depreciate enough over time to really be worth buying used.

However, as we all know, a Hyundai is a different proposition. Large initial depreciation hit, so a late model is affordable. They're now very reliable, amd if you do need parts they're cheap. Downside is a distinct lack of 'cool' factor.

Nothing wrong with paying for 'cool' if you can afford it. Rather foolish to pay for 'cool' if you can't.

blueiedgod

I'm in a situation where I can roll over some neg equity on my '03 TBlazer - not a lot though!! I have no intentions of keeping this auto. I owe about $15000 and its worth $6000 now. I am paying about $650 a month. I'm thinking about paying all the way until Jun 08 to pay down the existing negative equity I have. There is about 101600 miles on the auto now. We estimate mileage to be about 117700 by June '08. Do you think between now and next year, will the value of the '03 TBlazer drop more than $2000?

I think you will have to keep it longer than just one more year. $650x12 = $7,800, that is not including the interest. I don't know what kind of interest rate you have on that vehicle, but you will need to keep it for at least 2 more years to break even with the street value.

Unless the gas prices, all over sudden, drop to $0.99- $1.50 per gallon and everyone wants an SUV, even a beater with over 120,000 miles. Which has very slim chances of happening.

kyfdx

You are willing to keep making that payment... for as long as it takes to get even...

That is exactly what you need to do, to get out from under that debt.. Keep making that payment, until your car is worth the payoff...

Then.. start fresh!!

joel0622

There is a difference between offering advice to some one and speaking down to them. Yours was not advice.

dtownfb

While no one can predict the future for your vehicle, one thing you can do is find out the current value of a 2002 Blazer. If you go over to the "Real World Used Car Value" forum and ask for information on a 2002 Blazer with 117k miles, they can give you the auction and private sale price for this vehicle. (you have to provide the information as noted in the top of the forum) this will give you a better idea of what you can expect next year when your Blazer reaches that point.

Based on the info you provided, I'm assuming you have 2 years left on your loan. The $650 payment while high probably doesn't appear to be your issue. Why not pay an extra $100 a month toward the principal of the loan for the next year. Then in June 2008 call the loan company and ask for the payoff. The payoff should be around $4k-$5k. Now you have some options as your negative equity will be much smaller. You can payoff the loan and continue driving it (my choice); sell it privately (you might get lucky and get your payoff amount) or trade it when you buy your new car. If your situation changes (change of job, change of family status, etc.), you can always just keep paying on the Blazer and pay it off early and drive for a while without a car payment.

Good luck.

mookie14

Well some folk KNOW how to give advice and some well need to go to never mind. See guys one thing that is the issue i am not about to stay in this auto longer than i have to. Seeing that i should have heeded consumer reports warning and not buy gm products in the 1st place but i must admit it did what it was supposed to do it gave me a good time of tranportation for the time i have it and now and when it will be deceased. Now i am a Tank Williams kind of guy a civic no way, corrolla not so what i will do is do what i think is in the best interest of me & mine. And do what i have to do. As far as dissing people you do not diss me i am nice guy and when he made his remark i made mine. We are all here trying get the 411 on auto issues not dissing people because they did something that someone else did not do. Heck if we were all that we would not be on here posting so that's me take apologies made to whoever it pleases.

mookie14

Dtnfb you are a cool guy and you know what that's all i was asking for in the begining cool.

joel0622

Now i am a Tank Williams kind of guy

Unemployed with a criminal record?

jlawrence01

Now i am a Tank Williams kind of guy

You mean Tank JOHNSON.

Never screw up the name of a guy who carries a loaded weapon ... who is unemployed with a felony record.

joel0622

You are correct. :shades:

british_rover

Man I am confused what happened here?

Hostile much?

Kirstie_H

Inappropriate posts have been removed. If one asks for advice, one must be prepared to receive feedback, whether it is pleasant or not, as long as it is delivered in a civil manner.

dtownfb

No problem mookie14. i remember you from a few years back in the Explorer forums.

mako1a

Still too many overpaying financers out there, but they'll thin out shortly and cash buyers will be back in power. Come on 12% rates.

fezo

What the heck make kirstie a bigot just because you made a bad decision and she doesn't make that fact go away in here? Develop a thicker skin.

Strong does not mean having a $6,000 vehicle that you owe $15K on in $650 payments.

You may not be a Civic or Corolla kind of person but there isn't a person in the world that has any obligation to make sure you don't end up in one. And not one in the world who owes you making this all settle itself. People are offering suggestions based on reality.

You may want to take care of you and yours first and that's certainly your right but that's what most other folks are doing, too, so don't be surprised when they think it's a bad idea to lend you $18K for a $9K car and offer it at a high percentage interest. That's the way it goes.

Short if gutting the loan out I don't see much of a solution for you.

im_brentwood

Well said Sir Fezo!

Ya know.. I took a break from here for a while because of some of the posting.. regardless of what YOU may want to think, reality is reality and a car is worth what it's worth regardless of what you owe on it.

$9k upside down? That means it will cost you $9,000 just to get rid of it and that money has to come from somewhere.

warfire80

Not sure if this is the right place but so many topics dont know where to post. So here goes.

I am in the market for a 2007 honda civic w/nav. And trading in a 2005 Chevy Equinox LS with 23000 miles on it. TMV value is like 13,800(I owe 16.xxx) or so for the chevy.

I got to my first dealer and they give me a rock bottom price of 25,500 OTD in which I think I can get it lower but they arent budging. So off to the 2nd dealer they come back with a price of 27,450, at this point I am floored. I ask the dealer what they were giving me on the trade and he jumped around the question trying not to answer me so I finally got it out of him. He says 11,xxx, so I proceed to ask him why so little, when the trade value is closer to 14,000. He tells me that the dealership is a wholesaler dealership, so I told him to sell the civic for wholesale but my witty remark didnt get a good response.

So I was getting no where with him and he was giving me the manager calling other people on a saturday to get more for my trade run around.

So I am not sure where to go from here, most people are paying 21,xxx for the civic, I know I am taking a hit in the neg equity but I am sure I can work with dealer #1 another 1000 dollars. Or just go to another dealer and see what they say.

im_brentwood

FWD or AWD Equinox?

$14,000 for an AWD is a stretch... let alone a FWD. Post in "real-world trade-in values" and I can get you a realistic #.

Post mileage, equipment, color, location, and if it's ever seen the inside of a body shop.

Bill

qbrozen

TMV value is like 13,800(I owe 16.xxx) or so for the chevy.

well, there's your problem right there. TMV is not a good wholesale gauge. as brentwood said, post it in real-world trade-in values if you want to know the real value.

Kirstie_H

Bill,
Always happy to see you pop in. You still in the biz?

im_brentwood

Good to see you too!

I'm taking a breather.. got quite sick... have a BMW Independent repair shop in Jersey that's more of a hobby at the moment although business is good.

Give it another 6mos-year and I know I'll be into another store tho..

Kirstie_H

Thought about you when I bought my current vehicle from your old shop last year.
Glad you're getting back on your feet!

qbrozen

bmw shop? what? not enough vauxhalls here in NJ to base a business on? ;b

interestingly, I just bought an old bimmer a month or so ago. are you still up in ... oh... where was it? teterboro? no ... that's not right. darn. its escaping me at the moment. Its by the parkway, i think i remember that much.

fezo

BMW shop in Jersey you say?

What you have lying around for sale?... Older and one where the top comes down...

im_brentwood

Haha! I'm up in Rahway.. right off exit 131. Come by and grab a beer.. you still in Jersey?

im_brentwood

I do say indeed! Got nothing for sale at the moment.. got a customer who deals in used BMWs that I can refer you to, super anal type, gets nice stuff and actually wants them right before he sells em.. weird, eh?

He's in Fair Haven no less.

Us guys in Jersey gotta get together for lunch/beer etc

qbrozen

Oh that's great! I'm quite familiar with that area. I cruise the dealers up that way on occassion. There is that one high-end dealer there on Rt. 9. Can't remember the name. I believe its not far from Bell Mitsubishi, on the other side of the highway. Small place that deals in MBs mostly.

I'm probably never leaving Jersey. I'll just keep moving further south.
Bought a house in Jackson a few years back and unless the developers push me out, I think I'm staying.

hey... yer email is private.

fezo

Hey, Mr. gbozen - we're in the same county. I'm in Manahawkin.

I agree. The Jersey boys have to get together. Someday I will find how the how and why of Mr. Brentwood no longer being a Floridian (that was quick!). Heck, back about 6 years ago he was trying to get me to move down....

Private E-mail? No fair! Drop me a line.

im_brentwood

My E-Mail si private? Crap!

msrpartsllc@yahoo.com works...

tidester

Use the "Display Preferences" link above to change your email privacy setting. It will let you make your email address visible to other members.

tidester, host
SUVs and Smart Shopper

im_brentwood

Ahh, thanks

qbrozen

heck, i thought terry said bill moved to Europe??? Or was that bill who told us???

hmmmm... come to think of it. Anyone suspicious that Bill has reappeared after Terry disappeared??

kyfdx

I heard they both left in black helicopters..

No, wait.. they are both buried beneath Meadowlands Stadium.... that's it!!

im_brentwood

I was in the UK for a while.

Just been sick a bunch lately... feelin better tho. Now, I DID just set the road trip world record I think... Left Emerson NJ - DeBary, FL - Emerson NJ.

Left tuesday night at 10:55pm, rolled back into Emerson this morning (Friend's house) around 9:15am.

I do love this STS I got

british_rover

Ohhh don't talk to gbrozen about the STS. He had a bad experience with one.

im_brentwood

I love mine! Just drove it almost 2,200 miles in 34.5 hours! Even driving like a lunatic I still averaged 25mpg overall.">

qbrozen

i think yer thinkin of graphicguy. i never had a caddy.

Bill, what happened? you abandon the Jag camp? ;b

british_rover

Opps my bad. I got my "G" name people mixed up.

Kirstie_H

LOL... even worse... you got your Q and G name people messed up

qbrozen

hehe.

it happens so often, that I never correct people. I should have made it a capital Q. Wish there were a change option in our profiles.