Bam Posted July 28, 2005 Report Share Posted July 28, 2005 Ok, my buddy desparately needs to get out of his car and is looking to buy a brand new car that has a lot in rebates. He has a 99 Jetta VR6 w/ 120k miles on it and it won't stay running. He's put $500 into it every other week for the past few months. He owes about 10grand on it and it will need to be towed to a dealership so therefore he needs something that will hold his negative equity. Right now he's looking at an Expedition, which I guess has around 10k in rebates. He can afford the payment no doubt, but he just doesn't have the money to front to pay off his car. Any help on the subject would be great, or other options. The reason he still owes so much is because he overpaid for the car, and put over 75k miles on the car in less than 2 years. Realistically he wouldn't be screwed like he is if he hadn't drove so much. Thanks guys Quote Link to comment Share on other sites More sharing options...
Skinner Posted July 28, 2005 Report Share Posted July 28, 2005 best advise i could give would be or him to trade it on on something cheap/reliable pay that off and then trade it in. Quote Link to comment Share on other sites More sharing options...
Bam Posted July 28, 2005 Author Report Share Posted July 28, 2005 He can't. Do you realize what trying to roll $10,000 in NEGATIVE equity on a let's say $5000 car would result in? A fucking horrible rate and the still the possibility of a shitty car that he will have to keep dumping money in. He needs a NEW car to HOLD his negative equity so he can still get a decent rate AND have a reliable car. If he bought a cheap car he'd have a rate of 15% or so. That retarded. Thanks though Quote Link to comment Share on other sites More sharing options...
OSUGT Posted July 28, 2005 Report Share Posted July 28, 2005 Its hard to trade it in on something cheap because those cars dont have the loan advance necessary to carry the negative. If he can afford the payment, a truck or SUV is his best bet. If he's interested, I can show him a Nissan Titan/Armada over here at Nissan North. Let me know. If his credit is good enough, why not just buy something cheap and keep the VW. 2 car loans might be cheaper than 1 HUGE loan on a 40k dollar vehicle. If he does opt to go with a high dollar vehicle and trade in the VW, he sure as hell better buy gap insurance. later, Jason Quote Link to comment Share on other sites More sharing options...
Bam Posted July 28, 2005 Author Report Share Posted July 28, 2005 His credit score is mid 7's and he makes 45k a year so its not a question of him qualifying or affording it. Also, there are very FEW cars that he can buy used that will hold the negative. That's why he's thinking a new SUV/truck, probably FORD. Two car loans are not a possibility because his current car is worth nothing to him, (doesn't run/drive) and is getting older by the day, why keep paying $300/month for a lawn ornament? Plus the fact that he would have to keep insurance on both which would be another cost. Bump,does anyone know of any other cars that could hold this kind of negative equity? Quote Link to comment Share on other sites More sharing options...
GRN96WS6 Posted July 28, 2005 Report Share Posted July 28, 2005 $10,000 is a lot of neg equity and you'd be hard pressed to find a car/truck/suv to hold that much of it. He made some mistakes it sounds like and now he just has to dig himself out of the hole he made. His best bet is to just sell the car and possibly get a personal loan to pay off the remaining neg equity left over and then buy a cheap honda or something to drive. Quote Link to comment Share on other sites More sharing options...
OSUGT Posted July 28, 2005 Report Share Posted July 28, 2005 Originally posted by BAM6I4: His credit score is mid 7's and he makes 45k a year so its not a question of him qualifying or affording it. Also, there are very FEW cars that he can buy used that will hold the negative. That's why he's thinking a new SUV/truck, probably FORD. Two car loans are not a possibility because his current car is worth nothing to him, (doesn't run/drive) and is getting older by the day, why keep paying $300/month for a lawn ornament? Plus the fact that he would have to keep insurance on both which would be another cost. Bump,does anyone know of any other cars that could hold this kind of negative equity? Why keep a 300 dollar lawn ornament? I dont know, maybe by a Kia for 150 a month and have a 450 dollar payment as opposed to maybe an 800 dollar payment on the Expedition PLUS gas. Just a thought man. I do this stuff for a living and see the horrors people put themselves in everyday with negative equity. If he buys this new car, he better be prepared to live with it for the next 5 to 8 years, if he doesnt have 10k laying around, he'll never get out of it. Quote Link to comment Share on other sites More sharing options...
ZYUL8TR Posted July 28, 2005 Report Share Posted July 28, 2005 Folks. This situation states the amount owed on the vehicle is $10K. Nada shows an average trade-in, for this vehicle, of $5K. This nets an amount of $5K in negative equity, not $10K dollars. GM is offering their employee discount until 8/1. The discount on full size trucks/SUV's is about 25%. For Colorados, it is about 20%. The percent decreases more with smaller cars. If the person in question was to buy a full size truck/SUV, he could easily roll that negative equity into this choice of vehicle. A $35K truck would have a discount of more than $8K. Plenty of room for negotiation as well. Quote Link to comment Share on other sites More sharing options...
Bam Posted July 28, 2005 Author Report Share Posted July 28, 2005 ZYUL8TR...the thing your not understanding is the fact that the car in question...DOES NOT RUN OR DRIVE and has minimal body damage. Therefore its not worth $5k, its not worth $2500, its' not worth hardly anything really. He's also looking at the new Saab 92x, they have about $7k in rebates which bring the car down to $16,800. Its a 24k car roughly, much cheaper w/ a good rebate then the Expedition. Quote Link to comment Share on other sites More sharing options...
Guest powers Posted July 28, 2005 Report Share Posted July 28, 2005 If I were him I would transfer the balance of the car to a credit card sell the car outright and get more from it. Then go by the new car and pay off the credit card balance over the next 4-5 years. he would get at least 2500 out of this car in it's current condition. I'm sure he could just take the car somewhere and have it fixed by a real german mechanic like acceleration on north high for 2K or less. That would be plan b. Quote Link to comment Share on other sites More sharing options...
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