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Asked: Jan 26, 2009 - 02:38 PM

Status: Closed

I am in a high interest loan with $3000 negative equity that I cant afford to pay off so I cant refinance. Any options?

is there any advantage by trading in a car with negative equity?


In Buying & Selling > Car Financing
2 answers - 300 days ago

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mr_shiftright

Date: Jan 26, 2009
Time: 06:11 PM

None I can think of unless a) the car you are buying is worth less than your trade in, allowing you to break even on the deal, or b) the car deal you are making has an incredibly low interest rate which will somehow soften the $3000 loss (or more) you are blending into the new loan.

This is tricky business, so keep your eyes open if you are blending an old neg equity loan into a new car loan. Generally speaking, it's a very bad idea, because you will have even worse negative equity in the new car. The dealer has paid off your loan and now you owe him for that + the new car with its subsequent instant depreciation.

So it's a hole that gets deeper.


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spittman05

Date: Jan 30, 2009
Time: 06:31 PM

I'm just about in the same boat. I've always been told to find a car (new) that has a rebate on it. But if you're like me, I don't buy new, lol. I have a high intrest loan too, and I'm not seeing a way to get rid of my car :( Hopefully you have some luck!!!

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