What You Should Do if You're Upside Down on a Car Loan - Car Dealership Negotiating Tips
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- Опубліковано 7 січ 2018
- #upsidedowncar #negativeequity #carloan #tradinginacar #carstealership
If you're currently upside down on a car loan or need help with a budget, schedule a consultation here. melissablevins.setmore.com/
Step by Step Instructions on trading in or selling an upside down car loan HERE -- perfectionhangover.com/how-to...
Ozium for Car Odors - amzn.to/2BjltgK
Before you leave, click the link below so you won't miss a thing! / @perfectionhangover
How to sell an upside-down car when you owe more than the car is worth: We've (stupidly) purchased a brand new car and know the trouble you can get into when financing negative equity into your new vehicle purchase. Here's how we sold an upside-down car and were able to purchase a nice, used car for 1/4 of what we financed originally.
If you're upside down on a car loan, you have to decide if it's worth it to sell or keep the vehicle while you save to cover the difference. Car dealerships aka car "stealerships" will use bully tactics to trick you into paying more for the purchase AND taking less for your trade in.
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I’m not trying to get too emotional here but I legit started tearing up realizing I can actually get out of this awful financial situation I’m in if I just apply myself and take your advice! Seriously thank you!!!
You definitely can. I was able to pay off just over a $100k in 34 months and it was hard plus I make a lot of mistakes along the way. In the end, my life has been changed forever and NEVER again will I be in such a mess. You got this! Its so worth it!
Hi Diamond I love watching your videos too! It’s a shame what dealerships do to us good people. I can’t wait to get out of this mess. I’m praying each and every day.
Same. Same. 🥺🥺
I agree with the other comments. It was great to come across this encouraging and empowering video in regards to this daunting task of getting rid of a vehicle where you owe more on it than it's worth. I'm so ready to see the light at the end of the tunnel. I plan to post my car for sale either tonight or tomorrow. Thanks for the tips.
YHWH REIGNS I’m so glad it was helpful to you. Best of luck selling your car!
Thank you!!!!!! You completely flip the script! Turning the dealers against each other for your good!! Is genius
Thanks, Destiny!
i'll never buy a new car again. USE FOR LIFE!
Why do you say this? I'm about to sell and upside down vehicle and I'm wondering what the best option would be...
john soulees just don’t buy a $50,000 new car. If it’s like a corolla for 20k ish then u be okay. Right off the lot the car drops $5,000. New car has high price for registration every year. Insurance is high since I’m 27 only. If u plan to keep the vehicle then it’s fine to buy new I guess. After buying 3 new cars, ummmm I’ll just buy a use one. Also, always negotiate with the dealer. If they say their price is firm. Go to another dealer.
@@jayescapeplan New vehicles depreciate the second you drive them off the lot. As SkyTheDestroyer said, a good used car that's well-maintained can last you up to a decade! Also...don't buy into the warranty. It's basically prepaid maintenance. Have a good emergency fund in place (at least $1500 if possible...$2k if you're married with kids) and buy used.
lease
@@chopdeez2961 worst choice.
Great advice. You are the 1st & only person to turn this into an empowering situation,
KBillions99 thank you for your sweet words! ❤️
looks great.. Sold as seen... upside down.. i got the gap insurance but it didnt have a proper suspension so i ended upside down in it. LOL
Na fr you really are. Youre about to change my life!
Oh SHES GOOD!!! I am totally confident I can handle this now! thanks so much for sharing !!!!
Thank you for your sweet words!! Go get it handled! I can't wait to hear about how you tackled it!
negative equity is what everyone deals with at least once in their life simply because a car's depreciation is the most fastest depreciated asset in the world. you will never win. you will always end up paying more than what it is worth. Cars are so dangerous financially speaking. god bless! Love the video
Great video and strategy. Thank you so much for sharing.
So helpful thank you!!!
This video is very informative, great advice!!
Keith Cooper thanks so much!
Great info I'm actually on this journey right now 👍
T694 R/T good luck! Let me know if you need any guidance! I hope it all works out for you!
Thanks for this, great video 👌🏾👌🏾
This was great thanks for the advice!
Thank you so much i been looking for this informations for some time and you answered all my question great insight definitely subscribing to your channel 👍👍
Thank you, Xavier! I'm so glad I could help!
Hi Melissa, you've got some good info in here, but as a used car salesman (work for a privately owned, non-franchise store, so I can't speak to how other dealers work), I'm going to throw something out there for you and viewers, take it or leave it, up to you. When a customer comes to me saying "I'm interested in a vehicle, and I know I've got some negative equity" I will direct them to vehicles I know can "hold" some of that negative equity. By that I mean that the vehicle I'm selling is priced below NADA book value, and can absorb some of their trades rollover without throwing the Loan-to-Value ratios all out of wack. Again, not saying all dealers or salespeople take this approach, but if I know what the problem I'm trying to solve is right off the bat, I can better serve my customers. Just my $0.02, again a lot of excellent info in the video, especially about KBB vs NADA.
iamShepard you, sir, are a great salesman with high integrity. You are the minority, I believe
Where do you work? I need to come there 😩😂😭
Thanks Melissa!
Yes you really helped me thank you so much.
Trinity Hester good luck!
Thank you so much for this video
PURCELL LASH you’re welcome!
Great advice, thank you
Very informative! Thanks a lot!
Shaka Shakur you’re welcome!
Thanks for the knowledge
Devell Wilson you’re welcome! Hope it helps!
Great video👍🏻
I literally thought you meant escape from an overturned car. Then you said finance coach and I realized this video was about being upside down on a loan. That makes more sense
Jon Bradley ha! Comment of the year! 👏🏻👏🏻😂
Haha
Great video...I subscribed... Thank you
Mr Mattbanks thank YOU!
Excellent video! Great tips! Shrewd tactics! Your husband has to be proud of you. Thanks for the video
Randy at Random thanks! I hope he is 🤣
Just subscribed your awesome 💯🙌
THANK YOU FOR THISSSS. I’m trying to get out of my car loan and I am struggglinnggggg
You’re a Beast! Thanks
Great video very helpful
Jessica P thanks!
Awesome information
Super good advice 👍
Thank you!
Love you're videos
Thank you!!! I piled on another loan so I’m over $10k upside down 😫 I will try to do what you say on this video thank you. Wish me luck!
@Brandon you mean 25,000 right?
You get a thumbs up just for letting me know about NADA lol I always wondered what they were actually using because I knew it wasn't Kelley Blue book unless it was to their advantage
Thank you👍
Great video
thank you so much
Nicole Wesley you’re so welcome 🙏
Thanks!
Thanks.
Thank you
Eno Explores you’re welcome 😊
Your hair is gorgeous!!!
Thank you ❤️
I made a down-payment on my current car using a credit card to redeem the cash back on the "purchase". I promptly paid off the full credit card balance with the cash I had saved for the downpayment.
Caedmon Walters this can be a great way to save some money, but many people don’t have the discipline to pay the card in full. I know plenty of people who are able to, but you also run the risk of a catastrophic disaster happening before you’ve paid the balance. I’m glad it worked out in your favor though.
Thanks for this informative video. I tried to trade my truck in today for a new car. The dealership did not give me a fair trade offer so I walked out. After thinking about it, it's OK. I don't need a new car. I just wanted a new car. Now I'm glad I did not take the dealer's offer. My truck does not look the best but I can spend my hard earned money on lots of things other than a high car payment and insurance.
So smart! I’m so glad you walked out! There’s no reason to take a huge loss on a vehicle that meets your needs just fine!
I’m just waiting for the next big snow storm I’m going to run my car into the tree 🌲😂😂😂
Mike vuk 🤣 oh no! Lol
I’m thinking about doing the same how did it turn out for you
Hodorr Hodorr i got a new car . Lol just make sure u get Gap insurance 😂😂😂
That's a wonderful idea😂😂😂
looooooool. I don't know how many times I thought about that too. 😇🤣🤣😂😂
Great video! Very helpful. Im $10,000 in the soup with my car now. Was taken advantage of due to being uneducated during the buying process.. I pay about $900/month with insurance and my payment combined. I need to get out of this vehicle and will definitely refer to this video next time
75 LITTRELL ouch! I’ve been there! Take a look at your entire financial picture and if you need to pay off some debt so you can free up more income to pay extra payments, do it! You eat an elephant one bite at a time! You can do it. Just may take awhile
You weren’t “taken advantage of!” You made a conscious decision to purchase a car you really couldn’t afford. You did this because you wanted it right then and there no matter what you had to pay! I’ve never bought a car based upon a monthly payment. That’s a license for a dealer to sock it to you. Try doing some simple math next time. Determine what you can afford IN TOTAL for a car before pulling the trigger next time.
Cry me a river . You wanted it
@@aeromedical6750 no that called greedy bas... in America screwing people out of money and should be criminal
@@applejack2911 - look at what the original author wrote “I was taken advantage of due to being uneducated about the buying process”. The key word here is “uneducated”. No one can screw you out of money when it comes to buying a car if you do your research first. Why do you think the car sales people start with “What kind of a monthly payment would it take to get you in that car?” Most people only consider that monthly payment when making a purchase vs. what they are really going to have to pay out for the term of the car note. They don’t even consider that they are taking out a loan that INSTANTLY puts them 5 to $10K underwater the second they drive it off the lot. How is that anyone’s fault but the buyer? Just because you choose not to do the math doesn’t make you a victim.
TEST DRIVE OVERNIGHT! I have never heard of that even in the best of neighborhoods. The longest I got was 2 hours with good credit
Thank you so much. I’m going to try this tomorrow. I owe 25k on a 2016 Altima that I purchased new and payments are 620 per month. I was being young and dumb. Hopefully I can get out of this.
Jackie Johnson I hope so! If you find you’re just too upside down, hustle hard to make up some of the difference! You can do it!
Jackie Johnson 25k for a Kia? I think you deserve that
COYOTE swap or you get DEPORTED a Kia? It’s an Altima.
@@jjjackbird09 is it the 3.5v6 altima?
Wow u owe a lot.
Smart!
Best way to get out of an upside down vehicle...sell it yourself for it's TRUE value, and take out a personal loan for the remainder of what you owe..cars are the worst investment ever..learn to buy cars with cash.
Ryan Roberts excellent advice
Ryan Roberts what if they won’t give you a loan?
Dave Ramsey 100%%%%%
Who do you sell it to, car dealer or a bank
@@denniso254 Try to sell it privately to another person for its blue book value.
I’m 19 and don’t know anything about trading in a car but I want to trade in my car and get an even older car and pay a lesser car payment but i’m really intimidated by the process
Crispy Chicken you need to go onto nadaguides.com and see what your car is worth. Is there someone more experienced that can go with you?
So I work at a very large dealership as a sales consultant and I can say that your advice is great... I have had customers do exactly what you said and they got great deals. Another tip would be to never buy any back end products from the sales person because the finance managers will always discount more than the sales guy can... Although you literally will be the exact customer every sales person hates Because they will spend more time with you and make no money
Central Coast Self Defense thanks! I’m sure many salesmen stop by this video and roll their eyes. But I hope to help people get out of the financial bind so they can finally get ahead!
im not dealing with this situation but i bought a used sports car impulsively when i was making good money out of highschool, and now i regret it because it modified it too much to be a useful and reliable daily driver... and my commute is from northern virginia to DC lol... 6spd manual too in a extremely hilly terrain with traffic is no fun either. Trying to figure out ways to take the least blow to money as possible. ive already put 32,000 miles on the car and it dropped 1.5k in NADA blue book value as soon as i drove it out of the dealership. lesson to all highschoolers out there. maybe ur moms 2003 honda accord is actually not that bad!
Hey, Melissa! So, I have a 2007 Honda Civic Coupe that I’ve not had for more than a year. I purchased it from a used car dealership that I had purchased my first car that I bought and paid off from, and this is my second (I am the second “owner” of this car). Just a few weeks ago, the head gasket blew off and when I take it to the shop to get it looked at, they said the damages and repair would be roughly $4000. I’m a 22 year old, college student with a full time job. I don’t have 4 grand to “spare” on a 10+ year old car. I still have right under 4 grand left to pay on it & KBB priced my car in its condition @ no more than $1200. Ubering daily is getting expensive & I’ve been trying to hold off on going the “upside down” route because I know in the long run, I’m looking a lot of money spent. My credit is your typical college credit (loans) & my car that I paid off, then this second car that I’m paying on. What are my options here? I just feel like paying on a car ($325/mo) that I can’t/haven’t driven in nearly a month is just a waste of money!
PLEASE HELP!!
Aaliyah Fitz. I can feel your frustration in your comment! I’m so sorry this happened to you! I’d see if you can get multiple opinions on the cost of the head gasket. Don’t even think of going the upside down route (as you put it). Does your town have public transportation available until you get the car fixed? Can you carpool with someone else and share gas expenses? My suggestion would be to keep paying the payment, get multiple opinions, and fix the car. That’ll be a good car for a long time likely. It’s just unfortunate that this happened without an emergency fund in place.
I have lease car that I owe more then what the car is worth! The value of my Honda is 18k and the buyout amount is 26k, 8000k difference. What should I do?
Thanks a lot. You are very informative.
I also need some advise. I am moving from Hawaii to Texas. I have a 2017 Toyota Corolla that I owe 14,800 on and according to kbb if I private sell I can get 13,000. Shipping my car to California and driving it to Texas is $900..if I ship directly to Texas, it’s $2200.
My dilemma is on whether or not I should sell my car. If I don’t ship it then I won’t have a car when I get there nor will I have money to purchase another one right away. However, I won’t need a car right away due to traveling for a job a couple months away at a time. Shipping the car to California for $900 I would still have to factor in gas, a couple nights if hotels etc.
do you have any advice on any of this? I would also like to mention that I just read one of your comments on someone else’s question in regards to gap insurance. I also bought gap insurance through my dealership ..which I can call and see if they can refund me any portion of it.
(As a side note.. we don’t have a car max out this way :/)
Does this still apply to a rather newer car where my hands where tied am I current regretting it?
Great video. I’m trying to get my Wife’s car loan right side up, but every time I get there, the value drops and I’m upside down again. This is very frustrating because she needs a suv with more space and we’ve never traded in a vehicle before. I’ve talked to dealers and my credit union and they’ve said that I need to pay down the loan first. I still owe $7,800 and the car is worth around 7,600-7,700. I seriously don’t see how people trade in cars so easily.
HappiePappie81 oh man! Sell it private party! You can do it! List the car in the Facebook marketplace and on autotrader and get it sold!
@@PerfectionHangoverjus ran the checks this week, i owe ~23k on a car that's worth ~45k. a dealership told me they can get me in a 2019 vehicle for 52-53k tops. am i in a good bargaining position? how should i play this? i can put about 500-1k down. should i even do a down payment? how should i play this?
I have a question If I do sell my car even If Im up side down with negative equity ... Let's say my car value is 25k but my loan is 35k because I m up side down by trading my cars before if I sell my car for 20k and I still owe 15k can I still buy another car ? Even if I don't have my car anymore ?
I wonder if I should take out an unsecured loan to get rid of negative equity. My car’s payoff amount is almost $35k and the dealer wants to pay $25k at most. Any advice is appreciated, from anyone in the comments too. I’m even considering voluntary surrendering my vehicle, at this point.
I need advice.. I have a 2011 chevy Camaro @t was 172k miles. Its worth 6k if that; I owe 11.7k on it. Recently, I wrecked it with only having liability insurance so my credit union has filed a claim through their insurance. Can you tell me what should I expect next and also what should I do when its time to trade, sell, or roll over if that's a option. Thanks :)
I cross reference CarMax all the time against our Toyota dealership. On Toyota Certified, we are always a better deal and value.
Carmax gross profit, more than double the industry standard. 14% vs industry is 6%..
You could have easily said here's my CarMax quote, will you match? They'd probably said yes.
No business can be the cheapest, or offer the most every time, or they be out of business.
Solid advice. Thanks for sharing!
same here I financed my first car with little to no experience what so ever then the car started to break down on me and the dealer ship that I bought the car from was shady and they didn't want to help me fix anything on the car because I didn't agree to there warranty.when finally my car's transmission failed and because I needed a mean of transportation for work and school I pressured myself to go to a legit toyota dealer ship trade in my ford for $4000 less of what i owed on it and purchased a 2020 toyota that now put me on a $13000 upside down.right now I am just trying to see if there is hope for.if I can lower that negative equity as much as I can.it suck
Your video was helpful but i'm in need of more information i am at a 18% interest on my car which i have had for 19 months i went in to dealer today to seek for a lower payment and better deal but they are only offering 8,000 which gives me a 10,000 negative towards new loan is it worth it ? or should i try and refinance please help 😫
If the car salesman is good they will show the number you want on the trade, but what It matters is the bottom line price. If the car value is 20500 but the dealership is selling you the car for 24000$ just to show you 5000$ for you car the total is 19000 but if the selling is 22000 and they are showing you 4000$ for your trade which one is a better deal...
Your video was very informative.
I bought a 2013 Nissan Sentra about 2 years ago from CarMax it had 39000 miles on it now it has 107000 miles and that CVT TRANSMISSION is going out so I got pre-approved at my bank and am just trying to research my options before I go to any dealership. I still owe 7,800 so am weighing my options. I'd keep the car and fix it but I found out to late that Nissan CVT cars are problematic. They have class action suits all over the country right now. I will never go near another Nissan ever.
40 an a mule 40 an a mule I’m glad you are taking control of the situation! Let me know how it goes!
Nissan CVT are notorious for breaking relative to other Japanese brands. If you want long lasting cars go Honda and Toyota reliable and low maintenance. Will last 500k miles with basic maintenance
Yea Nissan is in a lawsuit over those cvt transmissions did you ever get a cvt flush done tho? I hear it helps prevent it but not 100% sure tho
Hello! I am about 18 grand in the whole I went on nada and it says my vehicle is worth about 8. I am going to follow your advice and get it appraised by carmax. I'm looking at a new vehicle that is about 21k. It will be a hit but my goal is to stay at the same or less carnote. Thanks for your video. I. Going to several dealerships!
Do you still get tax credit on upside down car?
Never heard of an overnight test drive. Is this common and how does this work? Do you leave your car as collateral?
Mega Supreme most dealers where I live allow you to take it overnight with a copy of your driver’s license, insurance card, and with you signing a waiver for damage.
I like the Idea of saving money on GAP insurance but I come to find out that after about 2 or 3 years your insurance company is liable to drop the GAP because the car is not considered "new" anymore as for the dealership GAP last for the lifetime of the loan
Grand3 Lyfecuhh I hadn’t heard of that. I’ll have to ask my agent! Thanks
great share! just a quick question, is there a rule of thumb as to when you could sell your car that's upside down? is it better to wait til its at least 2 years old into the existing loan? or you can do this as early as after the first year? or 3? i appreciate your response. thanks in advance!
Nathan B the longer you have it, the more upside down you’ll be and the longer you’ll be in debt if you have too expensive of a car and/or other unsecured debt
@@PerfectionHangover that makes sense! my car just turned a year old and planning on getting an SUV instead for space. needless to say i had my share of buyer's remorse! next question is, would you recommend getting a USED car versus getting into another loan? some people told me its better to LEASE instead since there are rebates available that can offset the negative equity? truly appreciate your wise inputs!
Some questions: I put a large down payment , 10k on a car worth 20k. (2018 Toyota Corolla for Rideshare). As of now the kelly blue book pricing for it sets it at 15k. I assume Carmax might go cheaper at 10k. I always think they will offer less. As of July 2020 I own 8.5k on the car. Now this means I’m not underwater yes? This means I can sell my car even if I owed 8.5k on it. I have more equity in the car so I should break even on the loan and not owe any more? I will most likely keep the car as my monthly payments are low, but this is just asking , what if I sold? I’m in good shape? And I won’t sell my 2008 Lexus IS 250 as I have the pink slip title for that, completely owned.
You’re in great shape! I’d hold onto it!
Okay so my car is worth 13-15k but got it at the dealership for 19,500$ after taxes it was 21,000$. Had it for a year now and I want to trade it in for a car the same price of 19k. Can I work this out?
I have a 2009 Lexus Is250 and still owe about 8k and im wanting to trade it in for something newer, Im not well educated on the trading in process but how would i know if i have negative equity on my car before trying to trade it in ? Im glad i found your video!
ARL 6399 visit NADA.com and enter your car info
I listened to this whole thing and I still can't see how you GOT OUT from under an upside down car? If I am not too confused, I think you are attempting to lose one loan to undertake another. My scenario would be to ask how can I get out from losing money on a car likely valued at $33K and the loan company says payoff is like $42k? Is your strategy to get a new loan but I can't figure out how a bank isn't still going to expect to loan you the full amount for the original debt? Sorry I am so confused.
Thank you so much. I’m $8000 in negative equity. I’ll be contacting you.
I need your advice, I have a truck which the dealership valued it at 17k , and the pay off is 26.2k when i went to try to trade in, i pay 633.50 (not including insurance )and i still have 62 months remaining, which is gonna be like 38 k including interest, i cannot afford it, and i dont have the income to qualify for refinance, since the dealership lied that i won more. I wanted to surrender, the vehicle and save cash to buy a vehicle cash, what are my options. Ive given already 6k and only 2k has gone in to priciple i feel is never gonna end and im missing the more important things on life because i have to always save up and stress for the payment.
I may have to use this one day lol
Just buy in cash then you will never have to worry about it
Horrible advice on buying GAP through your insurance comany vs. the dealer. Insurance GAP pay 125% of MSRP while dealer GAP pays 150%. Plus, if you use it, the insurance company takes your deductible out of the settlement; dealer GAP actually pays your deductible. That was financial malpractice on your part. Not to mention if you switch insurance providers before your loan is paid off, you lose your GAP coverage and have to buy it all over again with the new insurance company whose rates might be higer than everyone's based on their losses.
I am so stuck... I was in college last year and my high school car an 06 Chevy impala finally broke down on me so (innocently) big eyed and looking for help I ran to the dealer ship with $600 and my impala to trade in, walked away with a 2011 GMC Terrain and now it’s completely broke down and I’ve repaired It 3 times all over $300+ and still owe 10k on the car... completely stuck and don’t know what to do! I’ve went to two places and they are saying I need to put down 4-5k or pay down the vehicle to 5k... I can’t see myself wasting that money knowing the car is not running.. I don’t know what to do🤦🏾♀️
Great advice. Thank you. So what are your thoughts on me taking my 2017 Honda Civic that I have not get of equity on, and trading down for a vehicle that's a little older. I'm looking to try to get a CRV. But my thought was that you know I could do that and get a better deal. It doesn't seem like that's going to be the case. It seems like last option might be to go ahead and let them roll what I owe into a shittier deal. Basically, but at least I can be in a brand new car...... I don't really know what to do about this situation. I am homeless in my vehicle, and I do still have work but I'm currently seeking disability, the reason I am homeless. So it's going to be very hard for me to run around all these dealerships and do that. But I am going to pull a little bit of that. Regardless. I'm absolutely going to go to CarMax on your advice and thank you for that. And if I have to take a kind of s***** deal now that's it is what it is. I need something bigger I can live in....... I need something I can really car camp in and it needs to be something that can handle the Florida sand... The Civic cannot handle the sand in the slightest.... So looking for a four-wheel drive CRV... Not married to the CRV but something along those lines is. I need great gas mileage to be able to still do my deliveries. It's the only job I can do that I have at my disposal. And I can barely do that because well the Honda Civic seats are pretty much the worst case scenario for a herniated disc. Luckily I'm very knowledgeable on physical therapy as this is my third messed up disc. As well as the fact that I was training to be one. So I've been able to get it healed pretty well, but it's been quite tricky and I've had to concentrate on it much more than I should because of this situation......
But yeah I really need some help and some great advice. So thanks for the advice you gave, I wish I had somebody like you to personally talk to and lay out the whole situation too. So I could really figure out what my good options are or I should say what my better option might be..... After this, I can do some of the tricks you're saying. Cuz right now all my time spent on trying not to lose my car as I pay off the back bills... Then I'm truly truly homeless. With a sign on the corner. Not sure how my family will explain that to their friends. Looking forward to hearing the explanation though..... Amazing how you can be there for some people and when you run into trouble well they're nowhere even if they're right in front of you....
So yeah my thoughts are I'm going to probably roll what I owe into a new vehicle. Try to get as least f***** over as possible. Then plan on trying to get out of that deal. Kind of more in the way that you're explaining.....
I’d probably keep your current car because rates are sooooo bad right now (except for new).
@@PerfectionHangover well my thoughts are that I'm going to end up trading into a new car. And my payments are already high so if they don't go higher than this it's really not a big deal. The interest rate though might be. So I think I'm looking at more. How am I going to get out of the next deal. Or I can look at it as this is my forever car. As I explained in the situation above, I will be living in it most likely. So I really need something more than a Civic. Not big enough to live in lol. But for other reasons of camping, hiking and fossil hunting, I need something that can go off-road too. As since I'm in the situation I'm going to take advantage of it and do a lot of things I like to do as I just mentioned. But yeah, this current car is about to run into a lot of problems and considering it's my home, it absolutely cannot be breaking down. Or I'm really really screwed at that point. Like you know cardboard sign sitting on the curb asking for money screwed at that point.
So, I'm really just trying to figure out how I can get the most value for my car and probably going to try to get into a brand new one because they're having trouble getting rid of their brand new ones. So maybe I can get an okay deal that I just don't really want but it seems I'm going to get a deal I don't want to begin with. So I guess to get the best out of the situation. I could at least be in a really nice car that's appropriate for my situation.
I read on the comments to sell it yourself then take out a personal loan to pay off the remainder of the loan.....But how do you go about selling a car privately that you're still making payments on and the bank has the title?
Rican Italian you have to make arrangements with the bank first to determine your cat’s value and how much you’re actually upside down. They will run your credit and see if you qualify for an unsecured loan for the difference. Communication is key.
My second question is whether you know any insurance company that sells gap insurance (mine doesnt offer this product) and Im paying a lot on this gap insurance which i bought from the dealer!
K. Kassan Nationwide sells gap!
Hi I have a car that i financed a 2015 Tucson SUV which was 22k with only 35000 miles on it. I've only had it for 8 months. I'm sick of it and wanted to know how I can get rid of it. Rn im upside 19k. My mom is the cosigner n wants to give it back to the car dealer. I think if she actually gives it back it called repo I think. I check that it can be work 10k. Help just want to get rid of it
I did not understand why you said we should buy gap insurance for I know it’s good if you get in a wreck but how does that help with buying a car?
eduardo gonzalez if you are upside down or will be it is always a good idea to purchase gap insurance to protect yourself in case of an accident. You usually can’t add gap later so be sure to research this first
You mentioned that you should ask your bank to look up the nada value of the car you own. How did you use this information? Sorry if I missed it!
Nestor Castro knowing the low and average trade in value on NAĎA will help you to negotiate with the dealer to get more for your trade. At least that’s the goal!
Perfection Hangover I see, thank you! Great video!
Im 3k upside down owe 15k worth 12k i want to trade in and get a car 9k how does that work ? Will i no longer pay debt if i trade in for a cheaper vechile ???
So you get a loan from a credit union to cover the negative equity on your current loan so you can pay the amount left when you're able to sell it or tade it in?
Josh X yes it sounds stupid right? That’s because it is and yet many people are in this boat
Hey great video, along with some great advice. I was wondering if you could help me out in my current mess of a situation.
So back in the middle of October I decided to make a trip to the dealership to see exactly what I needed to do an order to get myself in a newer Dodge Challenger. I went in not expecting anything due to my terrible credit score, but to make a long story short, I ended up getting myself in a 2016 RT challenger. The car is worth roughly 26k, but I owe 33k on it. My payment is a ridiculous $645 a month. At the time I was looking at the situation with rose covered glasses, but now reality is starting to kick in, and I feel as if I went a little overboard. Now I’m looking to get myself into a more affordable sports car. Mainly a 2001 corvette c5, or a 2004-2005 Subaru WRX STI. The thing is though, since I currently have some negative equity in my challenger, would it be wise to trade it in for a car that’s worth about 12-14k?
I went to a dealership the other day that had a really clean, low mileage 2001 corvette, told them I’d be trading in my challenger, and that I’d like to get my payments down to about half as what I’m paying now. Needless to say, they only valued my car at 23k, wanted me to put $2500 down, and my monthly payment would’ve been around $350. Got a semi bad vibe from the deal, so I ended up walking. Do you think that was fair for my situation? I also probably divulged too much info to them when I first walked on the lot. This is all pretty new to me considering I’ve always bought my cars private party with cash in hand.
Any advice to get me out of this mess would be much appreciated. Thank you!
Well, I'm going to play devil's advocate and say that you already stated the obvious. You made a big mistake in financing the challenger in the first place that upside down. The only thing you've mentioned is wanting to get a sports car, which isn't very practical in your situation. Subaru's hold their value better than any of the others you mentioned, I believe. The 2001 Corvette is too old to finance and pay that much for. A 17 year old vehicle for over 20k with $2500 down is not the smartest choice. I'm glad you walked away. IMO, I'd suggest saving as much as you can to sell the car outright and pay the negative equity OR take out a personal loan to cover the difference and pay cash for a $2500 car with the money you were going to use for a down payment. At least that's how I'd address the situation. Then save up and pay cash for a used Subaru in a year or two. I promise when you're saving that $645 per month for a year or two, you'll be able to afford a nice car without payments or the stress of being upside down. I hope this helps.
@@PerfectionHangover Why not just make extra payments? Why not cut out eating out and put that towards the payments as well? Its always better to put every penny into a current loan and pay it off fast. Then keep your current car and maintain it by the book.
Then put the money you were paying to the car and put the money into a retirement account.
@@Bonsai-Miata2020 of course that’s a better solution! Easier said than done for most.
Thanks for the great advice Melissa! So I went to a dealership to possibly trade in a car I am slightly upside down in. My car is roughly worth $30,000 and they want to give me $24,000 for it which leaves a $6,000 difference. They "took" the $6,000 difference off the price of the new car price at the beginning of the invoice, then rolled the entire price of my trade in ($30,000) into the price of the new car stating "they have to pay off my car also!" Now I'm no mathematician but I smelled a rat and walked away! Does that sound correct to you? I figure they should be adding the $6,000 difference in and NOT the entire price of my trade in into the financed amount. Am I wrong? Thanks!!
Wink they totally fudged the numbers. You were smart walking away! If you are $6k upside down in a dealership, I wonder if your private party value would be around half that? If even? Check it out and if you can sell private party and come up with the difference, do that. But think long and hard before you finance another $20k on a car. What could your life look like if you didn’t have a car payment? ❤️
@@PerfectionHangover , thank you for the reply! I will look into it. For now I'm just going to hang on to it until I find someone reputable.
How do you get to test a car overnight or even drive that car to another dealer with the salesperson in it? Give me the trick to do that, please.
I have a 2015 Chevy Malibu. I owe $8,587 on it still and am considering trading it in for a bigger, eco friendly vehicle. Nada guides is saying a rough trade in estimate would be $8125. What do you think would be the best course of action for me? Nothing wrong with the car just need more space and a better gas saver.
I’d recommend listing it for somewhere between clean trade and retail on autotrader.com and in Facebook marketplace. Try to sell it yourself! Then find something larger but don’t fall for the more expensive vehicle. I LOVE the Buick Enclave and similar GM vehicles with 3rd row and all the options! It would be a bit more expensive than your $8k but you can probably find a 2010-12 for around $10k-12k
I bought a brand new 2018 Jeep renegade about a year ago and my payments are $513. I’m looking to trade it in after making payments for a year and still owing $22k on it. Going Friday to see if I can trade it in for a used one with similar features. Hopefully my trade in value is good. I’ve only put 8k miles on it and drive it 4 times a week. Wish me luck!
Good luck! My advice is to go to nadaguides.com and kbb.com before you go in and also check truecar.com to see recent sales of your make and model on your area so that you’re prepared. They WILL try to low ball you! Let me know how it goes!
Curious to see how this turned out. I also have a 2018 Renegade. I love it, but my life situation has called for me to not be able to afford the car note. Just looking at all my options.
I have a 2014 hondaia alanta gt and I got it from honda kia and they fixed some things but they sqewed over ever since I got it and I owe 11,400.56
Hi your video was really helpful. I just need some additional help. So I have a bad credit like less than 600 and I want trade my 2016 rav4 xle which has 140000 miles on it. And I have a negative equity, I owe $17,000 for my car my payments through a credit union is 380 a month which a lot for me lately. I need to either buy a super cheaper car in cash or I need to trade this and get something which can make me have lower payments but my credit is low. I dont know what to do. I just want a cheaper payment like 200 to 250 a month or maybe just by a cheaper car in cash but I need to get of my car. I would love to have some guidance from you thanks.
Salman khan your situation is tough. I know it’s not fun to hear, but I think in your case, you’ll be stuck with that car for a very long time. 140k miles is ridiculously high for a 3 year old vehicle. Head down and plow through this debt. Cut some costs in other areas to make up the payment difference.
I have a Jetta that I’ve been paying for the last 16 months. It’s only worth $10k to the dealers because it has high mileage for a 2017 model, at 53k but I still owe $21k. Even if I sell it privately, the most it’s worth is $14k. I didn’t get approved to roll it over into a new car because my credit isn’t that strong but I got approved for a new car. So now I have 2 car loans. I don’t mind paying for both for a little while... but if I sold it for $14k... and I owe $7k left... how does it get taken care of from the bank? Can I still sell my Jetta? Btw the new car I got was the beetle because I’ve always been into them and it’s the last year of production.
SoLA489 at this point, you’ve already bought the beetle so you’re stuck with. 2 cars until you can come up with the $7k difference in cash (as long as it doesn’t depreciate even more). The beetle could have been purchased at any time after taking care of the Jetta. My advice would be to 1. Sell the beetle and use the beetle payment and any extra funds you have every paycheck to pay towards your Jetta. Or 2 pick up a side hustle or extra shifts to pay towards the Jetta until you have the $7k in negative equity paid off.
This is an unfortunate situation for those of us who don't have the credit or income to qualify for a loan to cover the difference. Also, very hard to sell a car that no one wants
bebe4235 I understand completely. That IS very frustrating. Do you have a good budget in place and a way to tackle your debts? You can visit my website to sign up for free 5-day budget boot camp if you’d like!
How about accepting gaap insurance from your credit union ?
Yes!
I have a car I want to trade in but I know I still owe 10k it stopped working. Two questions one how do I find out if I have GAP insurance and two how long is it good for?
Kona 88 you can start by asking your lender. But Gap insurance only covers if it’s totaled ...not when it stops running. Hopefully you can save up and find a mechanic to fix it
“So.. I walked away from that dealership and will never do business with them again” 😅👏🏻