What to do, owe too much on jeep want s/t different?

Question

my friend has a wonderful jeep, it is an 06 jeep liberty only 15000 miles and is beautiful, it is a limited one, she just bought it a year ago and now has to drive alot more and the cost of gas is killing her, what should she do, she owes 5000 more than it is worth at private party value

Answer 1

Her best bet is to trade it in for a new economy vehicle that has over $7,000 in rebates and dealer/manufacturer incentives.  These eat up the upsidedown situation she is in.  You need specialzed knowledge to do this real effectively because the dealers have all kinds of tricks.  Work a cash deal by getting loan first. Check lendingtree.com, eloan.com, capitalone.com for the best lender resources. If you have good credit, go to roadloans.com or drivetime.com.  Do your homework on the car you want. Know the invoice price minus rebates and/or manufacturers incentives before you negotiate.  Truth is, dealerships get kick-backs on all kinds of things, including a higher interest rate they can sell you (even if you qualify for a lower interest rate!).

I actually collect sports and exotic cars and get all my cars at least 40% off retail.  In fact, before I learned Dr. Suzanne’s method - I got royally screwed three times at the dealerships.  Her site is www.cartopsecret.com it is the best info you will ever learn about buying cars.  Just the tip of the iceberg is how to take advantage of rebates, hidden manufacture/dealer incentives, financing tricks, trade-in tips.  I'm serious; if you go into a dealership without this knowledge - you are in for it; they will make you feel like you got a great deal when in reality you got seriously ripped off.

Answer 2

if it is one of those "buy here, pay here" places, they usually accept the return of a vehicle, without giving any money back though. if the loan is through a bank, she will have to pay for it. thats why dealers and banks check so many things when financing cars to us.

Answer 3

she'll have to save her nickels.  Get a second job.  I don't know if you're any good at Math, but keeping the Jeep is probably the cheapest thing.  You all need to figure that out.

A lot of people would pay $10,000 difference for a newer car that saves $50 a month on gas.  Don't you be somebody like that. Be somebody that does the math.

Answer 4

Look into car pooling. It may not be a good time to sell it. 5000 will buy alot of gas.

Answer 5

If she owes $5,000 more than "private party value", then she probably owes anywhere from $8-10,000 more than what trade-in would bring her.

She's HIGHLY upside-down, and there is no magic way for it to dissappear. SUV values are in the tank right now, and no lender will overallow $8-10,000 onto a new car loan, so trading in is pretty much out of the question UNLESS she has a ton of cash to overcome that negative equity.

Advice? -- Keep it and ride it out. The cost of trading it will be thousands, and it would take a few years' worth of gas to make that up. If she can, double-up on payments for a year or so, then take another look at values and possibly selling or trading.

Answer 6

There is not much she can do.  She paid too much for a jeep that she can't afford to drive   If she sells it , she will lose $5000.  If she drives it , she will spend a lot on gas, but probably not $5000 worth.  Maybe she should carpool, or get a second job.  Best to keep it , take her lumps, and learn a lesson