Going upside down on car?

Question

i owe 17,500 on a car and i need to trade it in for personal reasons. so if i get a car thats priced 12k and i get 13k for my car do i just finance the 5500$ thats left over on my current car? i know i gotta pay the finance charges for the new car but id still be oweing less than i owe now on the new car correct?

Answer 1

Your math is off. Take 13 from 17.5 and you get 4.5  Regardless...they add whatever the defecit between your amount owed and the allowance you are given and add it to the vehicle you are financing. You would owe $16,500 for a car that is worth a lot less....just like you do now.

Answer 2

With negative equity on top of the new loan, you'll have a car you will never be able to get rid of before it's paid off. Your payments may be close to or more than what you're paying now.

Answer 3

you still have to finance the 12k on the car you are getting you would be financing 16.500

Answer 4

well you should try for online sources, there are many online sources who provide upside down car loan for any credit situation and also with low interest rates, try to contact them and get your problem resolved, for your reference http://www.90secondcarloans.com my one of friend had recently got upside down car loan from there and also with low interest rates, you may try this source.

Answer 5

Nope.  Not quite how it works.  You owe $17,500.  If you bought a car that was $12,000 and your car was worth $10,000, you would be paying a difference of $2000.  That difference would be added to your payoff of $17,500 for a new loan amount of $19,500.  In the scenario you described, you would have a NEGATIVE difference of $1000, so you would subtract that $1000 from the $17,500 you owe and that would be the loan amount on your new car.  If the new car is priced at $12,000 and you try to finance $16,500 on it, it probably won't happen.  

If that confuses you, look at it from a different angle.  You owe $17,500 for your car, and you get $13000 for it.  That leaves you with a balance of $4500.  You then buy a car for $12000, plus the $4500 you owe on the old car:  $16,500

Answer 6

You would walk away owing about the same, but probably with lower payments

$17,500 owing

$12,000 new car

$29,500 total

$13,000 trade

$16,500 total. Thats without fees, charges, taxes etc, and also assuming that you can get $13,000 for your car.