Finances, automobile?

Question

Would like to get rid of my 2006 Jeep Commander and get into a less expensive vehicle; unfortunately still owe $20M on it and it's not worth that much. Any suggestions? Can't afford to take a loss.

Answer 1

Even if you traded and the dealer rolled your negative equity into a new less expensive car, that car will suddenly become a lot more expensive and your payments could easily be about the same as your current payments.

The best option in a situation like this is to simply stick with the current vehicle, find a way to make payments, and eventually get out of your upside down position so that you have more options.

Good luck.

Answer 2

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Answer 3

Only choices are to repo where you will not be able to get a car or come up with negative equity. For a person to take over a contract from you with negative equity and used, they would need a beacon in the 800's and most of these people are older who have paid all debts.  A Jeep is not the vehicle that they would want.  Keep and learn.  Get a lease if you have credit.  Your payment even in cheaper vehicle will be higher as you would be adding in negative equity.

Answer 4

This question (in some form or fashion) gets asked many times on here.

If you "can't afford to take a loss", then your only option is selling it privately. However, '06 Commanders are only bringing $15K retail on dealer lots right now (much less for trade-in value). So, you're going to have a VERY tough time trying to find that one person that'll pay you $20K for it, when they can go to a dealer and get it for way less.

If you tried to trade it, you would definitely take a huge hit. I take it from your post that you wouldn't have the cash to cover the difference, so you'd have to eat thousands (assuming you could find a lender that would cover the negative equity on a new car, and even then you're right back where you started, as the negative equity would add hundreds each month to your payment). It is always very difficult to trade into a less expensive vehicle when you have quite a bit of negative equity.

Advice? Keep it. Ride it out. Pay it off. Let's assume that you'd lose $7500 if you traded or managed to sell it. How long would it take you to make up that loss in gas savings in the new car? Years.