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Negative Equity :(


thorne

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oh yeah thats a good idea, get another loan just to take care of the negative while having the original car loan:rolleyes:

 

Don’t be condescending about that which you know nothing about.

 

You are 19. You will learn the world isnt always black and white.

 

HELOC loans are often at much lower rates than car loans especially with poor credit. If he did own a home(which I don’t think he does) it could be a probable solution.

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hey guys even if he is 8g negative, with the right cars and right rebate you can knock that off. i sold a brand new 06 left over equinox and dissolved 7g negative. and that was "with out" employee pricing. with on a higher priced car can knock 3-6g off.

 

So what you're saying is they could have had a car for $7k UNDER MSRP but since they had negative equity, they paid MSRP in the end. That's NOT a deal and still has them where they were BEFORE, only now they are driving a new car.

 

It may be what they wanted but in NO WAY is it a solution to getting out of debt. It only delays the negative equity a little further back then before. Before they had a 3-year old car with $7k neg equity and now they have a 3-day old car with $7k neg equity that's only going to get worse the longer they have it..... :(

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Don’t be condescending about that which you know nothing about.

 

You are 19. You will learn the world isnt always black and white.

 

HELOC loans are often at much lower rates than car loans especially with poor credit. If he did own a home(which I don’t think he does) it could be a probable solution.

 

true i am 19, but in no was is it a good idea to take a loan out to get out of debt, your just putting yourself it debt farther. and if you get a heloc yeah you can get like 4 or 5%, but what about buying a car that has 0% fian. options. is it better to borrow money on 0% or 4%? I know more about fiancing and loans that most people.

 

 

 

So what you're saying is they could have had a car for $7k UNDER MSRP but since they had negative equity, they paid MSRP in the end. That's NOT a deal and still has them where they were BEFORE, only now they are driving a new car.

 

It may be what they wanted but in NO WAY is it a solution to getting out of debt. It only delays the negative equity a little further back then before. Before they had a 3-year old car with $7k neg equity and now they have a 3-day old car with $7k neg equity that's only going to get worse the longer they have it..... :(

 

i can see your understanding, but ive seen cars 1yr old with 22k miles that have lost 500 off msrp with deprication! the deprication only depends on the vehicle, what about all the collector cars like old hemis (yes this is after 30yrs, but its the same secnario). deprication depends on the market.

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never do that.....worst thing you can do is allow the equity in a home to be sucked away. you can default on a car loan but don't give up the equity in the home. in a bankruptcy that will be the last thing the courts will touch and it can be the only thing you'll be left with if anything at all. you can give up the car but fight for the house.

 

Do you own you own home?

 

Possible refinancing to get a cheap loan rate and absorb the negative + the new car???

 

KillJoy

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I was able to roll ALMOST $10K into a 99 Dakota when it was new.

 

Yes, I had hella payments, but, after 2 years, what I owed was equal to what it was worth.

 

I also went upside down into my Marauder. Best decision I EVER made. I would do it again in a heartbeat.

 

Going into a car negative is not a bad thing, IF you are okay holding onto the car.

 

:thumbup:

 

KillJoy

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I could type a long ass list as to why buying another car is a horrible idea and why getting a heloc is a bad idea even if he had it available to him.

 

There are no magic beans, super secret loan programs, special financing, rebates, or anything else that will get rid of 8K. You simply have to pay it off.

 

And to all this rebate and 0% financing garbage, cars that rebates are offered on do not hold msrp value at all ever. Their market value reflects what the average buyer paid for the vehicle. This is because people selling the used ones have to lower their price since all the rebates are available on a new one.

 

Thorne you simply are suck with the decision you made. You have to pay it down man.

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And to all this rebate and 0% financing garbage, cars that rebates are offered on do not hold msrp value at all ever. Their market value reflects what the average buyer paid for the vehicle. This is because people selling the used ones have to lower their price since all the rebates are available on a new one.

QFT

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If he has gap insurance most people don't even know about it nor do they ask about it or check it.

 

I wasn't kicking him while he was down man I was making a point because he was talking about buying car parts when that money could be put to the payoff of the car so they CAN get the bigger one that they need.

 

 

Yes I have GAP. I got Tagged 2 months After buying my 2001 Camaro. It saved my ass hard.

 

As for all the ideas. I agree I do spend my money stupidly sometimes. But I'm not a complete idiot. As for the turbo comment More of a pipe dream. I know once i start doing the new house my money will be drawn in the newdirections

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