I owe more than my vehicle is worth?

Question

i have a 2004 Chevy Tahoe and i owe $20000 on this thing and i want a gas saver but i dont know how to get out of the Tahoe, what should i do? can someone help me, please?

Answer 1

You have to answer a few questions to determine if getting rid of the Tahoe is the right decision. Are you upside down in the Tahoe? What kind of car do you want to get? How much does that car cost? How much can you get for your Tahoe on trade? How much will your next vehicle cost? What will be the monthly payment? What will be the difference in payment between your current Tahoe payment and your next vehicle payment? How much is your current monthly gas bill for the Tahoe. What will be your monthly gas bill for the new vehicle? What will your insurance payment be for the new vehicle? Will it be higher? It could be that you will will save $100 on gas with the new vehicle,  but your new vehicle payment will be $200 more than your current Tahoe payment. In addition your insurance cost may go up $100 a month.  You don't want to end up saving $100 a month on gas but end up actually spending $250 more a month on car payment and car insurance. You may find keeping the Tahoe and driving it as little as possbile may be the best thing to do right now. Who knows gas prices may fall.

You can sell the Tahoe yourself, take it to CarMax or some other dealership, or try to trade it in. You can also look into trying to see if there is a company that will buy it to ship it to Mexico or overseas.

Answer 2

Honestly, there's really nothing you can do because if you trade it in then you will have a negative line of equity on your car, meaning the dealership will take the amount they are giving for the car off of how much you owe with the current leinholder. Then the rest of the amount that's left will be added to the new loan on the car. But if you mind that and don't mind paying on the gas saving car for 6-10 years, then go ahead and trade it in.

Answer 3

Hate to say it but your probably out of luck.Prices are dropping fast on big suv's and people still can't find buyers.I just read an article on MSNBC about that today. Read this before you make a decision. http://www.msnbc.msn.com/id/25051729/

I own one too and i think i'm just going to have to stick it out with it.Good luck to you though.