BEST WAY to TRADE in a CAR with Negative Equity
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- Опубликовано: 9 июн 2024
- Best way to trade in a CAR with negative equity without breaking the bank and going into a deep dark hole of debt.
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I'm going to give you 4 ways you can get rid of negative equity on car loan and trade in a car with negative equity but first what is negative equity. Negative equity means that you owe more on your car than it is worth which is another way of say you are upside down in your car loan. Being upside down in a car loan it is not a big deal unless you are trying to sell it or are trade it in for a different car. This is because if you are upside down you will eventually get the loan paid off and it will not matter at that point. However, If you are trying to sell your car then you will have to cover the difference one way or another. Watch for my 4 tips and be sure to stick around to the end for the bonus.
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Best way is to have gotten gap coverage and find a telephone pole to hit.
U forgot the J/K! We don't want people going to prison over a car payment lol.
@@DiamondEdwards what is JK?
@@wendellmotton4982 just joking 😄
😂😂😂😂
Lmao...
I have 5-6 thousand in negative equity... I'm definitely going to try to make some extra payments and keep it until I'm not upside down. I just hate putting so much into a car that I don't plan on keeping. Thanks for the advice 😊
That a smart move🙌 This should give you a little motivation ruclips.net/video/EL1IlyEf0-k/видео.html
This is what I’m dealing with now it’s so frustrating bc I don’t wanna put extra since I’m not pleased with the monthly payment that I’m currently in smh
I’m in the same situation. $6K upside down on mine.
Man I’m down 10k I’m bouta make something shake 🤬😴
Am like 17,000 in negative equity on a 5 year vehicle. I wish they taught this in school. Thank you so much for this video.🥰
The bleeding stops now! Go with the "best" option and dig yourself out of this hole. You will never purchase cars the same again. Thanks for watching and I'm glad it was helpful.
@@DiamondEdwards I tried a couple lenders, but none that we good. If I took ill be starting all over because I have over a hundred thousand miles on my used nissan rough 16 vehicle. Ughhhhh....
What is the balance of this thing? Keep up with the maintenance, and keep making those principal payments. Don't let the mileage scare you. It may go to 200k! I don't think I need to tell you this as I am sure this is how you got into this deal but whatever you don't trade it in because the $17k can turn into $30k negative. I've seen it happen right these comments. What is the balance of this thing?
@@DiamondEdwards thank you and the balance was $17,000 but I got it down to 13,000. Also at first I was going to trade it in to the dealership, but watching your videos help me understand not to do that. So thank you.
Danielle Sullivan That is good progress. Keep up the good work!
Thank you so much! I was looking for an answer to this question and have watched multiple videos seeking guidance, yours offered the most clarity and logical steps. I am confident that I can make an educated and confident decision while making this transaction. Much respect, Diamond! Thank you!
Wonderful! I love it!
YOUNG MAN, YOU DID A GREAT JOB EXPLAINING THIS!!! I HAVE SUBSCRIBED TO YOUR CHANNEL!
Thank you for the compliment and sub! I have a lot information I want to share. I try to improve with each weekly upload!!!
I’m about 4K upside down. I went to a dealership to look at a used GTI and the sales guy did everything humanly possible to try and get me to roll over that much money into a new loan. He tried to make it seem like such a great deal and that they were helping me out but I work at a dealership and I know how they move money around to make it seem like a “good deal”. On the bright side, I saw just how stupid it was to even try to look at new cars at this point and I decided to just keep driving my car. Best decision I’ve ever made.
I love it! That's the best way to stop the bleeding. I'm happy for you!👍
I wish I did this .. I sold my Acura TL type s that I fucking loved I redid the whole entire car the engine . Coilovers exhaust etc. and traded it i for a gli . Months later , I dislike the car compared to my other one. Now I’m 5k upside down plus all the money i loss putting into my old car :(
I love the way you explain this! Thank you. I'm going to watch your principle payment video. I'm in negative equity. Definitely subscribed
Great video ! Very understanding and helpful thanks!
Great info! You brought up tips I never considered.
Thanks and I hope it helps you get a better deal on your next transactions.
helped me alot! your very good at explaining this thank you keep up the work
Thanks, glad it helped! Stayed tuned for more good content.
These are great videos. Thanks for teaching us so much!
This is an EXCELLENT education! You walk people through the array of contributing fact so well. Excellent.
Thank you Sheila for supporting the channel and your kind words. Welcome to the community!
Best video I have seen on negative equity, earned my sub.
Thanks you so much. This sub means a lot because it hit a personal milestone 604! 😁
Right?! Explained so easily!
Thank you sir your video not only helped with making the best financial decision but also reminded me that I shouldn't walk around with my head down because I owe more than the car my worth. I was really feeling like dirt before I saw this thank you.
Come to the conclusion its best to just keep my car. Its reliable and I can pay it off in 2 years. Thanks!
Great advice. Thanks.
Lots of great information thanks appreciate the clarifications , I now have a better understanding
Glad it was helpful!😀
Great video Diamond!
Thanks for this video 💪🏻 definitely will like and subscribe
Awesome, thank you!
Thank you 🙏🏽 very informative.
I am glad you enjoyed it!
Phenomenal video bro thank you for the valuable information 🙏🏼🙏🏼🙏🏼
Great Advice ‼️💪🏼
Great tips.
Nice video , thanks
Thank you so much for that information about negative equity cause I tried to surely trade in my car today and come to find out I have negative that it more is still owed on it than what the trade in price would've been and I'm in the upside down position like you said about that, I done had it for only about 2 years when there is a total of 63 months on it to pay it off, you're an honest
person, I wanna thank you for that great advice about negative equity, I sure wanted to get a new car today but it did not work out in my favor,
We’re stuck with a very large monthly payment with Ally Auto they charged us a lot in interest we’re 11,000 in negative equity on a 7 year old vehicle
Keep and drive it while making extra principal payments. If Ally won't allow principal only payment and refinancing it is out of the question then I would save up my extra money in a separate account until I had enough to pay it off and make one big payment! What ever you don't know go and get another car. Clean up this one first and use the knowledge you learned to guide you in future car purchases.
Same position ally auto sucks
Damn I’m in the same boat with Ally Financial I freaking hate them with my soul!
please if u go to a dealer whenever u hear Allys run away dont buy that day wait theyr so bad and have high rates…i’ve been a victim once but escaped bc of accident
Excellent tips.
Glad you like them!
Funny thing is I know all of this!!! But even I need to hear “the best option is to keep it” because it just confirms what I already know but may not want to hear. Before my career in HR I was an auto finance collector for 12+yrs and I had to collect on deficiency balance post repo. I had to explain this to almost every customer “why do I owe x amount” after it was sold at auction
I need you in the comments on my auto loan videos. You can be like the inside man telling people what to expect after the fact. We all have heard of those dealer auction where they get cars dirt cheap. They just never told us the difference was paid by unsuspecting car buyers!
@@DiamondEdwards oh yes the bank sells it for what they can get, applies it the the owed balance and collects on the rest from the customer if not paid it’s charged off... customers usually settle on the balance: I advise wait until End of the month the last week, call in and settle for 40-50% of the balance. Deficiency collection like sales dpt is trying to hit goal at EOM
I’m about 4K in the hole. Trying to find a way to get rid of this vehicle lol. Great video thanks for the tips
I hope the tips help you get out from under it. Thanks for supporting the channel!
you are the GOAT sir!!
Awesome tips man!
Using the last strategy to pay down my wife’s car to the point we are positive on the loan.
That's the sauce right there👊
someone should pay you to speak to our children(and adults) about this information. you could change the world my friend. thank you for sharing your knowledge with us.
Too kind. Thank you!
And i dont trade cars in. I bought it, i keep it until the wheels fall off.
I’d say I’m 3-5k negative equity in my current truck was wanting to trade for a newer car but think I’m gonna wait it out and make extra payments. Thanks for the tips!
i’m only about 3,000 upside down. i really want to do a trade in and get a brand new car that i know i would really really love to drive. but i think i’ll try and pay that negative equity first before going in. hopefully before this year ends!
You’re the GOAT !!!!
Thank you so very much for this video,its been extremely helpful...i owed 14000 but I'm going to try to sell it instead of trade in
Glad it helpful, Best of luck!
I've got about 6,900 in negative equity on my 2005 4runner, I'm trying to upgrade, and I appreciate the insight.
I hope this helps you make a more informed decision. Thanks for watching Jeremy.
i bought my car about a year ago and the dealership told me it had no problems what so ever and was pretty much brand new like they said it had 38k miles and its at 45k miles now. and im already having problems oil leak in the engine and the brakes are also bad. im not sure how deep i went but by the looks of it 6-7k. thats why i want to trade rather than wait for it to get even worse. Thank you for the information.
Love the game you spittimg out currently have a dodge challemger I'm like 10 k upside down. Want to get a tacoma v4 for better mileage and offroading. Currently looking to get rid if it fhe smart way.
Thanks for that! 10k is no small number but manageable. I hear you on getting out of it the smart way because our income is for us to build wealth not to get other people rich! Which method from the video do you like the most?
@@DiamondEdwards the last one imma keep it my friend
According to KBB my jku 2013 is valued at 16-17k and last I checked (couple of months ago) I owed around 8k .
My Jeep has been giving me headaches, huge problems and at times I feel like throwing in the towel and getting a new vehicle.
I thought about getting a newer jeep model, or look for a reliable vehicle but after reading a few articles and watching your video I feel like the smartest move would be to fix whatever current mechanical issues that I have and pay it off.
😩help
If you owe 8k and it is valued at $16k why not fix what you need to in order to sell it and use the different to buy something in cash. This way you would no longer have a car payment which makes repairs not hurt as much plus could start saving for your next car.
Also if your jeep is giving you a headaches why buy another. You gave them a chance move on!
My husband was 13k upside-down in his previous car. We were able to get rid of it last year with used car prices being so inflated. My car was 3k positive, and his was 6k negative so we traded both and rolled over 3k
But don’t you need 2 cars for you and your husband ?
Bought a car with a 580 credit score. 15% APR so im getting nailed hard. Now my score is above 760 and I tried refinancing the car, bank wouldn't do it because the car is worth about 4/5k and I owe 10k. Thanks for the tips my man.
Just go with the "Best" option I described in the video. We live and we learn so move forward and you will get this loan paid off and I bet you will never make that mistake again.
Thank you god bless
I swear man you said oh you owe $8000 dollars on your car loan and I was like is he reading my mind. This was literally me because I was in a rush to buy a vehicle as I needed it for work and I made a lot of mistakes I am now realizing.
What type of car did you get?
@@DiamondEdwards Ford Fusion Hybrid 2019, of course now I am a little older and slightly wiser I see the mistake I made. I depend on my transportation as my work is 40 miles away and there is no public transportation to my work, no bus or train and Uber is too much. And no one to ride with as everyone loves too far away. If I had this advice when I was looking for a car I would have avoided all of this. Lesson learned
Hindsight is always 20/20 don’t beat yourself up over past decisions. I would like to believe that you made the best decision at that time using the information available to you. If it turned out later to be a mistake the best thing is to learn from it, fix it and move on to make better choices in the future. You can handle this and I’ll be here if you have any questions. Thanks for supporting the channel.
@@DiamondEdwards First of all I appreciate the reply, thank you so much for all the knowledge and I want you to know you are doing the Lord's work. I will take the knowledge and run with it. Thank you so much, and I just thank God I'm still kind of young so I still have time to get my shit together haha. Anyway keep up the great work with the channel. We all appreciate it.
Your videos are so informative! Thank you! I currently owe about 16,000 on my 2016 car that I’ve only had for a year. I want to trade it in a get a newer car that’ll keep because it’s too small. I know this would put me upside down. I’m also eating to buy a house in July of 2021. Would getting the car now mess up my debt to income ratio for the house? Also which option would you recommend as far as trading in the car. I’m confused on which routes to take.
Depends on your income. The general rule is don't add debt if your planning to purchase a home in the near future. The last thing you want is to be approved for less house because you brought a car. Get the house then get the car. They don't care what you finance after you close on your house. The best way to trade in a car is pay all of your negative equity out of pocket never roll it into your next car deal. This would be a good video for you watch on car affordability and it will help with home affordability too and how they play together. ruclips.net/video/cUotQTUU-d8/видео.html
I’m a first time buyer and decided to rush in on a deal for a 2015 Camaro and not look at other options. I’ve had it for a few months and started to regret not getting a v8 and stick shift. I’m the one making and spending the money and wanna be happy with my purchase . The dealer told me to have it for a year and bring it back to trade it in for whatever I want. Which I’m pretty sure it’s what the best option you mentioned. Any thoughts?
Yes I get what you’re saying but like myself I have a car that’s unreliable and breaking down. I bought it used and haven’t had it a year. And I’m having to fix major issues on it already. So in my case I don’t think keeping this car is the best option right now.
Thank you so much ! I lost my job due to COVID I can afford my rent, but my car payments not so much. I’m always on the edge and I don’t like living like that lol. So im thinking on trading my car in for a used veh that is cheaper and so will the payments. I’m 5k in the hole , not so bad. If you have time, what do you think I should do
I would consider refinancing if my credit score is higher to get a lower monthly payment. Try not to get deeper into negative equity at all costs.
Upside down 9k on my current Jeep. I really want to trade it in for a 2020 Jeep Grand Cherokee. I have found some good deals in Texas since I live in New Mexico. The Grand Cherokee I found is listed in the dealerships website for 30k-31k. I was thinking about going to the credit union which they have really good interest rates. Do you suggest for me to just do more payments on my current loan and drive it like you said? Or give it a try with the credit Union?
I made a dumb decision and co signed for a friend.... she never was on time with her payments and eventually got behind and the bank was about to repossess it and so i ended up taking the car from her and then i found out i was the primary buyer this whole time! so i kept the car and continue paying it. I really don’t like this car and am thinking about trading it in but i am -6,000k but i’m thinking of just paying off that amount like you said in that video! or just wait till i’m not upside down anymore but still i made a crazy decision!! definitely learning from that experience and much from your videos! thank you 👏🏻👏🏻
I have a 2018 Nissan Altima and I want to trade it in for a Mercedes cls 550 I owe 16k on the Altima but they’re offering me 13k if I go put down 3k on the cls which is worth around (35k) would it be worth it ? I plan on keeping the car for good as well.
9k in the frickin hole :( Just about to start paying on the principal interest on top of my monthly payment and live with the stupid chevy. LOL #donotbuyachevy!!
If I sell my car and pay off the negative equity, will I be able to finance another car immediately after this? Or do I have to wait a certain amount time to go finance another car right after?
All that came out of my mouth after video ended was I love you me!! Lmfao thanks
My guy you got a bit of stress out of me.!!!🎉
So I currently have a 2015 chrysler 200s where i still owe 14k and on blue book its trade in value is about 10k... so would be about a 4k negative equity. wanting to trade in for a Toyota Rav4
Ok so I’m in the market for a luxury SUV. I’m currently in a 2018 Toyota Camry XSE (bought it new in 18’). I’m excited about working the best deal possible on the specific make and model new car that I want. The thing that I’m not excited about is the negative equity on my car. I’m about 8,000 in the negative according to a quote from KBB. I plan to go to CarMax this week to get a appraisal on my car as well to see what they will offer me for it. Also, afterwards I plan to go to the dealership where I see the car I want and negotiate the final price of the car down to where I want it and then lock that in and then come back a day or two later and then decide to tell them that I want to trade in my current car and see what they can come up with.
Does this sound good to you or what wood your advice be ?
This is the type of financial education schools needs to teach your childrens!!!!
What if you have a high interest rate and thinking if refinancing but you're also thinking of trading in within the year is it worth refinancing at that point or do you just suck up and pay current interest so you won't have so many hard inquiries thus probably affecting your chances of approval when getting the new car? What's the best move?
There is no closing cost on a auto refinance so if you can get a better rate there is no downside to refinancing. If a few hard inquiries affect your approval then your shouldn't be buying a new car. Best move? Refi, focus, get it paid off and save working towards bigger and better goals than what car you drive.
Currently sitting 12k in negative equity and working on paying the car off in 2 1/2 years with the info in your vids
That is awesome Omar. It's your money stop giving it away to the banks. They have enough money😂! Let me know once you have it paid off👊!
I’m 14k upside down. Should I get a personal loan for 14k and then trade it for a lease? My current loan is 84 months and the lease is 36 months. Thanks 🙏
what about refinancing if your interest rate is high. I know this is a old video but I didn't really see this in your video and id appreciate an answer
Thanks for the advice 👍, i wouldn't recommend putting money down ever as long as you do your homework and make sure your not upside-down then again the only way to do that is getting a new used car and having good credit.
I financed a bmw x2 in 2019. It’s a 2018. I am now physically having problems getting in and out of the vehicle. I want to trade it. My balance owed is about $36,200. How can I do this? I want to get a vehicle that sits higher. I need to be mindful of next vehicle cost though.
I’m probably $13-$14 in the hole, it’s killing me slowly. What a bad idea to get a brand new car.
What type of car did you buy? Which method are you going to use to get rid of the negative equity? My vote is always to drive it make principal payments as often as possible.
Diamond Edwards Jeep Grand Cherokee, I’m keeping it until one of us goes. Have no choice in the matter the mileage is so damn high.
LOL, I'm keeping mine until the wheels fall off.
I have no choice now, luckily I love it lol
I'm in the same hole brother i'm probably closer to 20K
I'm in the Business I would also recommend buying something with big rebates to eat up the negative equity Chevy keep big rebates
Hey Tony thanks for commenting and watching but that is the equivalent of the bad option I mentioned (rolling negative equity). If they use big rebates to cover the negative equity then they just over paid for their new car and they would be in the hole (negative) from day one. People DON'T do this! Keep your car longer, get them paid off and focus on building your net worth so you have the money to buy whatever car you want without any fuss. That is my plan!
2:59 I have a vehicle that I owe 25k one, and one day I decided to go trade it in, the dealership offered me 18k which means I had a negative equity of 7k. Let's say I role it over into the next loan. Will I end up paying like over 10k or more with interests?
What an amazing video! Thanks for all the info! It is super helpful. I got a cash offer from auto trader for 22,500 for my 2019 CANYON GMC. I currently owe 30k 😒 I did not know any of this information and I wish I would have seen your video; we just bought the truck. But you helped me feel better when u said it is not a big deal. The truck is amazing and I think we can enjoy it until we make more principal payments and reduce the amount we owe to the offer given (I know this can change but at least get close to it). That way we can improve our credit scores and maybe shop for a better deal within a year or two. Thank you for giving me a better perspective!
Thank you Vionette! That is a nice truck and I say keep it pay it off and drive it for years to come. Once it is paid off reallocation that payment to your future car purchase fund so the next one you can buy with no payments. One of the biggest mistakes people are making with car purchases is getting rid of them too fast. They have gotten so expensive and most don't have the income to support swapping cars every few years. The problem is the finance industry has made it so easy to switch cars but that leaves the consumer (you and me) holding the bag and paying the penalty.
Diamond Edwards I will follow your advice! Ty!!!
Hey is it possible to Refinance then trade the car in ?
We are upside-down 6 grand on a 2016 kia sorento
Bought a 2019 Nissan Sentra with a high monthly payment a month thought about trading it in a car for a cheaper car
Hi I have a 2015 Honda Accord hybrid I owe 17000 and Kelly blue says it’s worth about 12 to 14 . I would like to get out of it and get a full gas . my credit is fair and not sure what to do. I need a work truck as my job requires it. If you can give me some advice I’d appreciate it.
Im negative 8,000 but i have 4,000 to put down, should i put that towards the note or the down payment?
I loved the video, it was very informative. I'm thinking about trading in my current vehicle. Currently I owe $23,764 on it. It's pretty much brand new. I looked up the trade in value on NADA and these were the values I was given. Rough Trade in: $21,800/ Average Trade in: $23,450/ Clean Trade in: $24,800/ Clean Retail: $27,475. So going off of these values that means I no longer have negative equity and its not a bad idea to trade in correct? Or would it be best to wait and pay off more of the loan first? I'm still kind of new to buying cars. Thanks in advance.
Why do you want to trade it? Looks like you can break even so trading it in will just be starting over on new loan. No negative equity to worry about. I was in a similar situation where I could have sold my truck to the dealer and almost broke even. I ended up keeping it paid it off early and started investing my old car payment and in two years that account is over 16k and going up. This is why I will never take out another auto loan. The cost is too high!
Love and appreciate your video Diamond! Question I owe $6,536 and the car needs about $1,500 worth of repairs but my car is worth $4,500 (in great shape). Not sure if I should try to refinance or take out a small personal loan to payoff the car, repair it and keep it or sell it?
Do you have any money? I would repair it as cheaply as possible. Get some other quotes and only fix what is needed to ensure it runs. Then I would focus on paying it off ASAP. Once it is paid off start saving up and hopefully by the time it needs another major repair you can sell it and buy something else for cash. I would not mess with a person loan or refinancing. Your best move is to pay it off.
@@DiamondEdwards yes I do. It’s just been a pain cause these repairs are sort of stacking up and I just don’t want to keep dumping money into repairs
Yes I feel your pain. It can feel like a never ending pit. This is why this payment has to go ASAP. If you trade it in the dealer is going to low ball you. Personal loans have higher interest rates and there is no guarantee that car would have another problem. Finding a lender to refi this loan will be very difficult due to the loan to value (LTV) ratio. This is why I suggest keeping it running as best you can and paying the loan down. The common choice is to roll the negative into a new car purchase. The problem with this is you spend $25k to solve a $7k problem.
@@DiamondEdwards makes sense I’m just going to finish the loan and try to stick to that. Thank you for your feedback I really appreciate it!
@@bostonbebopeats7173 Thank you for being part of the community!
I want to part exchange my car with another one,the settlement figure on mine is 6300,the value of mine is 5700,the other vehicle I want to buy is 6500,I want to buy on finance that too,what can be the reasons they are declining
Hello I have brand new Honda Accord 2022 with 3 k miles only ! unfortunately was involved in an accident ! Honda fixed the car paid by insurance. By now I owe 30 k on this car in payments ! Should I keep paying this car at least for an year more, and trade in for a lower price car ,or pay the total right now to avoid more depreciation ? Ps : I have ways to pay off the amount owed !
Reply
Question: is it better to put down a $5000 down payment or 0 down payment and put the $5000 towards a principal only payment, or are they the same?
They are not the same, $5000 down is the better option. It reduces the amount financed, lowers the monthly payment and the total cost of the loan. Use a loan calculator and run the numbers both ways and you will see the difference.
Because of how interest in calculated, the only way they are the same is if you make the principal payment the same day as you finance the loan which is not always possible. Last thing depending on the cost of the car 5k down may be just enough to cover taxes, title, and tags meaning you didn't put much toward the car at all. Some people will tell you pay never extra on a car loan and just invest the difference. Rarely, is that person wealthy and never will a wealthy people say I finessed my auto loans and that is how I became wealthy💯
I got offered 1800 for my truck and I owe 22,800. Should I trade it in for a 10k car? Would that help me in any way?
I have a 2019 acura tlx I bought it for 32,900 in August 2019 it’s worth about 21k-23k on KBB now I want to get the 2020 tlx 35,000$ this fall what do you recommend
Since some banks will finance 120% of the purchase price a dealer may be able to make this work but the result is you end up deeper in the hole. My advice is to keep the car and get it paid off. I struggled to build my net worth when I was fighting debt. As soon as I become debt free my net worth started to take off. It's a questions of what's most important to you.
Diamond I'm in a quandary. I'm severely upside down on my car loan. Cars worth around 16,000, and I probably owe close to 30 k. The problem is that the car sustained front end damage because I let my son drive it. And the part needed to replace it is on backorder. I want to get rid of the car and get something that might be either four-wheel drive or all-wheel drive. When trading a car that is upside down, what's the lesser of two evils? Trading it in on a newer late model maybe even a certified pre-owned car, or a car that might be cheaper in price. That is around what the Kelley Blue book value is. Your feedback would be greatly appreciated.
Almost $8,000 negative equity on a ‘15 Mazda 6. I’ve been dying to trade it in for an suv but looks like I’ve got a few years to go 😭
We trade our car that we own 12,989 balance on for 13,000 but the dealer just deducted the amount from the new car instead of paying off our old car.
Still have 1 day left to finalize this deal can we go back and request the amount be paid towards our old loan?
Currently, I have no negative equity. On the payments I make on my Camaro, the dealer offered to give me more than what I owe. But I’m holding onto it. My previous vehicle though, I had about 4 thousand in negative equity. Before I even did the loan on the new car, I paid the negative equity to make it a wash.
So for reference, I owed 7k on my Chevy Cruze. The dealer offered me 3k. I paid 4K down to get it down to 3k I owed, and they gave me the 3k to clear the loan. The 4K I paid was never rolled into the loan. Camaro price stayed the same.
What about trading for a lease when you have lots of negative?
My parents are 7k in negative equity. They are looking to get a newer car. They currently have a 2016 Nissan Rogue
When you say the loan payment is equal to the value of the car. Which value are you talking about? The trade in value or retail?
Great info except for down payment. Down payments are to get dealers commission. Your better off keeping the money and just using it for payments.
Thank but you forgot the LOL😅. Fact: Down payments reduce the amount financed which reduces the amount of interest you will pay over the life of the loan. I like 100% down that way you pay zero interest. Dealers make money in a lot of ways but down payments is not one of them.
Probably going to keep the car and add a little more towards the principle. Sucks cuz I really wanted a new car but this option made the most sense because my car is still in good condition and still drives really well. Guess I’ll just have to be patient
Smart move! Getting your car paid and building your net worth will allow you to drive any car you want in the future. Trading in a car every few years and rolling negative equity each time will keep you broke and ensure you work until you die. You're on the right and I am glad you are here. The plan is to grow together.
Checked NADA and my trade in value for my car is between 13k-14k with leftover loan of about 19k. Looking to trade in for another car that’s about 29k-30k. What would I be looking at for an equity? Your videos have been really helpful for I am still new to the whole car loan scene
You will have $5000k and negative equity. If you can pay this out of pocket but put a big downpayment on your next car down do it. Everyday people roll that 5k into the new loan and look up a year later and they have 10k in negative equity because the car you buy to today for 30k is worth 25k a year from now.
This is a good video to watch before you buy your next car. ruclips.net/video/m1FE-gyyaJY/видео.html
So, if I have a car worth 45k dollars, and owe 37k.. if I go take that to a dealership who, if they got by Kelly blue book and I get 45k, but trade it in for a 12k car, do they cut me a check for the difference after the dealership pays the 37k to the lien holder?
That is exactly how it works! The car your buying has nothing to do with it. You would be owed a check for $8,000 in that example.
Is it possible to trade a car with 5k negative equity for a car 5k below the trade im value? It’s work 15.4K and the car I want is 11k. The issue is comfortability
i feel like the better option would be my best option since my current car is broken down and after i fix it i know it’ll continue to have problems so i want to trade it in for something nicer and reliable i owe $9000 on it and i have money saved up so depending on the trade in value i could pay off the rest of that loan so i don’t have to worry about negative equity, BUT if i plan to keep this next car for a long time would it be better to let the negative equity roll on and continue to save more money?
It is never a good idea to roll negative equity. You can't save money fast enough to make it make sense. I would follow your first mind and sell/trade it and pay the difference out of pocket but you owe $9k so don't go and buy a $20k car. That would mean you paid $20,000 to solved a $9,000 problem. Get something cheap and reliable so you can move on to more important things like investing and building wealth.
Okay I have a 2019 Toyota Camry, KBB told me its worth 23,000 and my loan is worth 26k so im 3k in the hole, So if i heard you right I would ask the bank to cut the check for the extra 3 ? or should i just come up w/ the extra 3? the trade my car in? or sell it? what do you think?
No, banks don't just cut checks for negative equity. The best move would be to cover the $3k out of pocket. If you don't then you are going to end up paying them that much more for your next vehicle causing that vehicle to be upside down and you get to pay interest on the whole amount. DON'T DO IT!
I have 10,00 negative equity. My transmission went out that would cost me $10,200, multiple shops priced out. I owe 12,300 and trade in for it they gave me 2400.
I owe $13,309.62 but Kelley Blue Book day my car is worth $8,828 I wanted to trade my car for a bigger vehicle I currently have 2016 Mazda 3 i Sport Hatchback
Which method from the video are you leaning towards?
Hey what if I trade my truck that I’m underwater in for a cheaper truck would I still be in the hole in the new one? Since cost less?
Unless your trading way down like from $25 to $5 trading will cost you more in the end even if you have cheaper monthly payments. Best way to save money is pay down the current loan to the truck's value and sell it, then go buy a cheap truck for cash. It's harder to win with money when your paying interest instead of earning it.
Hi thanks for the advice, but honestly I feel hopeless right now. I have a 2002 bmw that I'm in extreme negative equity. I have 3100 left on it but its getting old and I have 4 different colored doors and a different colored hood. It wasn't like this when I got it. I'm not sure what to do cause I was going to try and roll over the negative equity into another car but from your video that's a horrible idea. I just don't know what to do cause I'm on borrowed time with this car. And I need another one. It's honestly only worth maybe 500 dollars if I'm lucky.
Don't put yourself into a corner. Pay the $3100 off sell it for $500 save up some cash and go buy another car.
I am about $11k negative on a 2019 car. But I am making almost double my payments per month and will pay off the car about 2 years early. I plan on keeping it till the wheels fall off!
That's what's up! Just make sure that extra is going towards the principal balance and is not pushing the pay out further. YOU ARE ON FIRE🔥💪
I was considering chapter 7 to remove my loan. I think I'm going to go through the pain of paying the interest and save my credit