» Trading In a Car When You Owe More than It’s Worth

Trading In a Car When You Owe More than It’s Worth

Trading in a car typically means you will earn back some cash to be put toward the down payment of a new vehicle. However, if you are upside down on your car loan, you will owe money at trade in. The value of your car is lower than the sum remaining on your loan. This can happen in one of two scenarios: you failed to pay off the loan quickly enough or the car depreciated in value very rapidly. In either case, you will need to resolve the remaining debt with the lender. Recourse Loan Requirements Most car loans…

14 Responses to “Trading In a Car When You Owe More than It’s Worth”

  1. jr says:

    what can you do with a truck when you owe more than it's worth?
    iv’e got an 05 chev ext cab i owe about 3 to 5000 more than trade in about even on personal sale owe for 4 more years don’t need it now

  2. skidmark_84 says:

    Nothing other than pay it off. That’s why it’s important to plan long-term before buying a new vehicle.
    References :

  3. johnboy says:

    Clean it up and sell it just like the dealers do. The saying goes "There is an ass for every seat" why should yours be any different. Don’t take the advice of a dealer telling you what its worth that’s who got you upside down in the first place…
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  4. bigmikeumpire says:

    You are in a familiar situation…..you cant make payments faster than the value of the vehicle falls…….this is called being "upside down" in a loan. You probably bought it new and did not do the math associated with the total cost of this vehicle……AutoTrader.Com or Cars.com will show you what a vehicle is worth after 2-4 years….did you check that out before you bought this truck?? Probably not…..my preference is to buy a good, solid used vehicle after checking those two websites….a GMC Envoy is stickered at around $35000, but 3 years later it is only worth about 22, 000….you could not pay down 13000 dollars on that vehicle in 3 years….get the point. Next time do some better math before you buy. A good solid bet is buying a used vehicle in very good shape that still has a warranty on it.
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  5. happywjc says:

    Get use to the ownership!! Take it to a detail shop, and have it cleaned, polished, and maybe a new steior. Just to make it feel better to you. Because you’re going to be driving it for a while! If you trade it off, you’ll just be adding a -negative equity into the next car, and thats not good. good luck
    References :
    retired car salesman

  6. FILE says:

    Sell it now and cut your losses. You can get a better price if you sell it private. Don’t wait too long, it will only get worse and harder to sell with more miles on it. Good Luck, then buy something you can afford. A used vehicle.
    References :
    I know things.

  7. DM says:

    How do you know that you are "upside down"?

    http://www.nada.com/

    If you really are upside down then

    why not start a business in January that moves people and their furniture from apartment to apartment.
    January is the month that most people move and most divorces are filed.

    Get a classified ad that advertises this with your phone #

    you could get the temp help at your nearest
    http://www.laborready.com/

    or other temp labor placement business
    and
    when you make enough to pay for the truck then

    you could sell it on ebay
    http://rover.ebay.com/rover/1/711-1751-2978-71/1?AID=5463217&PID=2380112&mpre=http%3A%2F%2Fwww.motors.ebay.com%2F

    and then
    DON’T EVER

    NEVER

    Finance anything that way again.
    References :

  8. Frank C says:

    I recently had this same problem with a 2006 Dakota that I bought. I got out of the situation by trading it for a 2002 PT Cruiser that cost $8,000. I can’t really recommend any other option if you want to keep a good credit score. You will probably have to trade it for something cheaper that will meet your needs. I would go with a Small 5-Speed Car that is cheap for now and use the savings on gas and insurance to dig yourself out of fact that you are upside down on the veichle. Remember to trade it Before you miss any payments on the truck because if you have missed payments on the current veichle, it will be harder to get an affordable loan on the cheap car. I suppose you could try to sell it yourself and break even, but if it is a gas hog (Most trucks are) that could be difficult.
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  9. wazup1971 says:

    Just keep it, until it is paid off. If you trade in, you are going to lose a lot of money.
    References :

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