finance crap help

rado · May 4, 2004

Well, I own a 00' GMC Sierra Ex. Cab 4x2.

I financed the vehicle(well my parents did) and i'm thinking about selling it, and buying something more equiped for me(4 wheel drive).. But I asked my parents about it, and they said that there's not much I can do, because i guess I owe more on the vehicle, then it's worth.. So is there any way out of this situation so I can purchase something less of value yet, 4 wheel drive?

And comments suggestions would be very appreciated!

jcebruin · May 4, 2004

Dude,

You are what the finance people term "upside-down". Basically, your only option is to rollover the difference into the financing of the "new" vehicle.

Here's the scenerio as an example....

You owe - 10000

Trade-in - 8000

Difference of 2000

Price on "new" vehicle - 10000

You would have to finance 12000.

It sucks, but that's your only option....

Cheers,

J

OUMike · May 5, 2004

Yup...couldn't have said it better myself..

Wingnut · May 5, 2004

Well, you could also use some patience, and a little willpower....Suck it up, and make extra payments until you get it paid down to a point where you aren't upside down. Then start looking for a new ride.

stlmaj · May 5, 2004

Well, you could also use some patience, and a little willpower....Suck it up, and make extra payments until you get it paid down to a point where you aren't upside down. Then start looking for a new ride.

stop paying the min payments and get it paid off ASAP.

rado · May 5, 2004

Well d**n, I guess I am going to have to suck it up..

But thanks guys ;)

atomoverride · May 5, 2004

option b, get your current truck re-financed @ a lower rate: Thus saving you some money right now, and make it where you have less time to pay it off.

Machine · May 5, 2004

Or, you could try to sell it yourself and see if you can match or surpass the payoff. The truck would likely sell higher to a private party at a higher value than what they'll give you for a trade-in. Depends on how upside down you are.

Valsport · May 6, 2004

Yup, I'd look into a private party sale of the truck, $50 will get you a run-til-it-sells ad on autotrader.com with photos

99silveradoz71 · May 6, 2004

Negative Equity. I knew it well...owed $5500 on my 92 Jimmy when I traded it in July of 99 for the Rado. The dealer gave me $3k for it. I had another $3000 to put down...so our higher math leads us to find I basically only put $500 down on the truck...Thus my catch phrase until early 03 when I paid her off..."The house payment sits in the garage"...Either private party sell or take the hit with a trade now...or bigger payments if you can.

az'03Silverado · May 6, 2004

If the trade is in good shape you'll be amazed at how much the dealers can 'bend', though. A year ago I traded in my '98 S-10 w/ 90,000 miles. It was an ext cab, LS, 4x2, 4.6L, 5-speed. It was in great shape inside and out and ran perfectly. I still owed $7000.00 on it and the dealer told me it was only worth $4500.00. So, I said, 'thanks for checking, but no thanks' because I didn't want to eat the remaining $2500.00. It was amazing how fast the S-10 appreciated in value. They bumped it up to $7000.00 and still gave me the GM rebate on my new Silverado. Even though my trade-in was a wash, at least I didn't owe anything extra. I'm not saying that your situation will be the same. It depends on what you want to buy and the condition of your trade. But, it's worth a shot anyway.