Ashley asked:
I want to trade in my 2006 sebring standard car that I owe 9,500 on and it’s KBB for trade-in at about 5,000. If I get a car I like, will I be able to get a loan that includes the negative equity? Is it possible to get financed for the whole amount including negative equity?
Kim
I want to trade in my 2006 sebring standard car that I owe 9,500 on and it’s KBB for trade-in at about 5,000. If I get a car I like, will I be able to get a loan that includes the negative equity? Is it possible to get financed for the whole amount including negative equity?
Kim
Ann
It’s possible, but you won’t like the payment, may need a big downpayment and will be welded to the new car for a very long time. If you think your upside-down now, you ain’t seen nothin yet. From a financial point of view its really stupid.
Comment by Mark F — September 14, 2009 @ 11:14 am
Teresa
It’s getting harder with the economy the way it is, but if you have a good income to debt ratio and a credit rating of 720 or better, it’s possible.
You will be very upside down though. You can add $5 grand to the new loan for your negative equity. Lets say you find a car you like to $10,000, you add on the negative equity and you have a loan now for $15,000. You drive off the lot and the value drops 20% so now you have an $8,000 car you owe $15,000 on. As you drive home, someone hits you blowing a red light and totals your car. Their insurance gives you fair market value of $8,000 but you owe the bank $15,000. See the problem?
I’d keep what you have at least to the break even point.
Comment by oklatom — September 17, 2009 @ 4:35 am
Keith
You must be careful when going to trade your ride to a dealer. If you are not sure of what your car is worth then you can get really ripped off.
Dont be suprised if a dealer makes a terrible offer. It’s really easy to get a quote at a website to check how much your ride is worth. I have recommended – Good luck.
Comment by Gonzalo H — September 19, 2009 @ 12:11 pm
Barbara
Buy a car with at least $10,000 off…. such as many of the ’08s like Acura TL and the $5k won’t seem that bad.
You can find all the heavily discounted new cars at Fatwallet.com
Comment by PETER GRIFFIN — September 19, 2009 @ 9:08 pm
Jerry
I would never recommend financing negative equity into another loan…ever. You will end up with a car you couldn’t get rid of if you had to.
Comment by Scott H — September 20, 2009 @ 6:01 pm
Roberta
The absolute best thing that you can do to get out of your Sebring is lease your next vehicle. You might have to bite the bullet slightly on your payment but you will be out of the negative equity in aboout 3 years compared with 5 or 6 years with a loan. Then you can start off fresh. Any more questions just ask.
Comment by DaveinHD — September 21, 2009 @ 8:33 pm