negative equity

THE BIGPUNN · January 21, 2003

like many of us i've been looking at a new 2500HD crew cab. i had my truck appraised by my local GM dealer and the trade-in offer was $17,000. i owe lot more than that. ive owned my truck for a year now. he said i should try to sell it for about $21,000 privately. my question is, how many years will it take for me to catch up and break even?

Shaners · January 21, 2003

Alot depends on the interest rate you are paying and the terms of the loan.

bassdog · January 21, 2003

I am in the same boat (always have been cuz I don't keep my trucks long enough)

If you do end up trading, you will have to keep the new one for atleast the length of the loan to break even.

You my be better off selling it yourself :thumb:

timk49 · January 21, 2003

like many of us i've been looking at a new 2500HD crew cab. i had my truck appraised by my local GM dealer and the trade-in offer was $17,000. i owe lot more than that. ive owned my truck for a year now. he said i should try to sell it for about $21,000 privately. my question is, how many years will it take for me to catch up and break even?

My experience has taught me that if you are trading with the stealer it doesn't matter how much equity you have they always get it. Your loan company can show you your payment schedule month buy month to the end of the loan. I believe for instance that you don't break even on a truck with a 60 month loan and minimum down until 40 to 48 months into the loan Of course as mentioned befor it depends on your interest rate, term of the loan, and the make and model of the vehicle. I'd go to Consumer Reports and do a current value search for your truck instead of listening to the Stealer. Best way to sell it then is to put a sign in the window and get as much as you can for it.

This is a hard question to answer because of the many variables. Good Luck.

One Nation Under God

CMNTMXR81 · January 21, 2003

I actually have an Excel spreadsheet I whipped up that is pretty fairly accurate (to a few pennies) that tells you by what your monthly payment is, how much you have left to pay. This in turn compared to blue book can then be used to determine whether you are in the red or the black. But chances are, on average if you aren't halfway into or slightly over halfway on your installment contract (I.E. Loan), you're definetely gonna be upside down.

99silveradoz71 · January 22, 2003

Went the negative equity route on my trade for the rado. Had my 92 Jimmy then. Fortunately I had cash for a downpayment, but by the time it balanced out, I pretty much financed the total price of the truck. Payments are high, but it's what I want to drive. I just know that I have to hang onto her for a while.

timk49 · January 22, 2003

Payments are high, but it's what I want to drive. I just know that I have to hang onto her for a while.

GM is brutal. They keep comming up with new models that we just have to have. Whats gonna happen in 2004 to make us want to trade up? Who knows they might improve the rear view mirror.