Under water

RSCAR

Hi,
I have a car that I’m financing. A couple years into a 5 year loan I’m having buyer’s remorse. The car is great but the payments and term are way too expensive at this point. I don’t need so much car. Also I’m probably 3-4k underwater on it too. Is it possible to say trade in my $16k car that I owe 19k on for something that costs $8k? Obviously absorbing the hit on the 3-4k?
Thanks

Michaell

RSCAR said:

Hi,
I have a car that I’m financing. A couple years into a 5 year loan I’m having buyer’s remorse. The car is great but the payments and term are way too expensive at this point. I don’t need so much car. Also I’m probably 3-4k underwater on it too. Is it possible to say trade in my $16k car that I owe 19k on for something that costs $8k? Obviously absorbing the hit on the 3-4k?
Thanks

Yes you can, and roll the underwater part of your current loan into the new loan.

Will you be happy with the $8k car for the new loan length? Will it be reliable and not bleed you dry with maintenance and repair costs?

kyfdx

RSCAR said:

Hi,
I have a car that I’m financing. A couple years into a 5 year loan I’m having buyer’s remorse. The car is great but the payments and term are way too expensive at this point. I don’t need so much car. Also I’m probably 3-4k underwater on it too. Is it possible to say trade in my $16k car that I owe 19k on for something that costs $8k? Obviously absorbing the hit on the 3-4k?
Thanks

Unless you have the cash to pay the negative equity, you'll have a hard time borrowing $12K on an $8K vehicle, and if you can, it will cause you to drop into a lower credit tier. It's a money losing proposition, no matter how you look at it.

I'd just learn to suck it up.