How do i roll negative equity into a new car.?

Question

I have a car that i owe 18500 on. I would like to trade this in to get a smaller veichle and keep my paymentst the same. Around 330.00 the reason being is gas in my suv is outrageous my car is only going to bring me about 10000 on trade though. From what i understtand the 8500 difference is called neg. equity. Will a car dealership be able to find me a car I can roll this negative equity into andn will i be able to find a bank that will let me do this as well

Answer 1

Rolling $8500 onto a new loan (most banks won't do it) will increase your payment by $200/month, so good luck pulling that off. So, in theory, you'd need to try and find a used car for $130/month, which leaves you looking for a very-well-used car of about $5500. Again, this is all in theory, assuming a bank would even approve a loan with that much negative equity, and finance a well-used car for 60 months or more.

It is very difficult to try and "trade down" to a less expensive vehicle when you have a large amount of negative equity.

You also have to look at this fact: it would take you years to match the gas savings you'd see if you traded. $8500 buys quite a bit of gas.

I'd keep your SUV (unless you can double-up on payments for the next two years or so), pay it off, and go easy on the throttle.

Answer 2

Oh yes! They LOVE to get people like you. They will add $8500 to the price of the new car, and get you a loan for that amount. And you will be trapped just like you are now. In 4 years you will still owe more for the car than it cost new.

How much will $8500 buy in gas for the SUV?