Geez I'll never get to buy a new car

My2Beauties wrote: Great!!! I didn't realize how upside down I reallyw as on my car. Back when I bought it a little over 2 years ago, my credit wasn't as good, we hadn't bought the house yet and I was still paying some stuff off so I had sort of a high interest rate. Once I paid things off and worked my credit up to a decent standing, I refinanced my car, because my payment was way too high for what I paid for the car because of my interest. So when I re-financed a year later of course I re-financed at another 60 month loan (5 years) because with that particular car and year, make model etc..that is all the bank offered and I'm really bad about paying extra on bills when I have it, we'd rather spend it or keep it in the bank. So I always just pay the payment KWIM. So I still owe a little over $11,700 on my car, you guys will never ever guess what my trade-in value was on Kelly Blue Book..........$6500...... I'm really upside down guys. That high interest rate really kicked my butt! Man credit matters sooooooooooo much. Now that I have a decent interest rate I know I can get that same rate through my bank that I already have for a newer car but man I have no kind of trade-in and the difference between my trade in value and what I owe is going to be put on top of the price of any new car! This stinks I didn't realize it was THAT BAD! I thought maybe a little over $1000 at best $2000 but geez Louise. I want a new car so badly, I HATE my car, the mpg is horrible, the car runs like a POS and obviously the car doesn't hold value very well Ugh, I'll never ever jump on the first car I see and like ever AGAIN!!

Does anyone know of a car dealership or a certain brand of car that helps work with this situation? I serously doubt it, they dupe ya anyway they can! In the price range I'm looking without my trade-in issue the cars are very affordable, but add that little extra $5200 onto my payment and it makes it just way too high to pay for a car. I was only $500 upside down on my last car I traded in when I bought the current one I have, I thought that was good. Urg! I DO NOT want to keep this stupid car until it's paid off. *Sigh*

momofone replied: As for a next car I know Honda's keep there value. They are still worth alot even if you have them for years and are super reliable from what I hear.

luvmykids replied: A lot of dealers will roll over what you're upside down onto the new car, but then you're starting off upside down again. Keep an eye out for dealer rebates, that's when the dealer has a few grand extra to knock off the price or use to help with your negative equity. Good luck, I've definitely btdt

My2Beauties replied:
I've looked into several options with Honda. I'v eheard great great reviews on Honda's as well. One of my good friends has one and that is all she has had for the past 10 years, she said she'll never buy another Make of car besides Honda.

momofone replied:

Boys r us replied: That stinks! can u sell the car outright for closer to what you owe on it? I know trade you won't get retail, but maybe you could take an add out in the auto trader or something.

If not...I'd pay anything extra you have towards it until you can get it back down to reasonable b/c if you don't, you'll end up in the same situation again. Sure there are probably dealerships that would LOVE to see you come in being this upsede down and would finance you..but that money has to come from somewhere to get you out of the hole..and you'd end up with a new car that was say worth 20k and you'd owe $26k...so then the whole upside down mess would start all over. I mean..I guess you'd have a new car..lol

You know..there are a lot of things people don't know that can help on loans of any type. If you have extra to pay on it..PAY IT! and don't wait until the due date. If you can make half your payment at 1 paycheck and half on the next paycheck..you save interest b/c you're paying at least half the payment before it's due. People should always do this on car loans or mortgages..it can REALLY add up in savings!!!! Also, when they set your loan up, they say okay if she pays xx dollars on xx day of themonth for xx years..her monthly payment will be this..

So they're calculating your payment being made on one certain day. now..most people know they have a 10 day grace period and think as long as they pay it within the grace period, they're not late and there's no fee. True. they're not late..and there is no 'late fee'..but there are additional interst fees. So if your pymnt is due on the 10th and you pay it on the 15th of every month..that's 5 extra days worth of interest that was never accounted for in your loan...so you're making your payoff go up every month! and 5 days of interest may not sound liek a big deal but in the beginning of the loan where the per diem is higher, you're probably paying $30 bucks a day in interest on a car loan...so multiply that times 5 days and then multiply that times 12 months and then multiply that by 5 years and you've just jacked up your loan a LOT of money!!! you do the math!

there are a lot of ways to get into trouble without even knowing it and likewise there are a lot of ways to save money...even if it's just 1 days interest a month by paying 1 day befoe your due date..

momtoMegan&Alyxandria replied: Sorry you are so upside down. I have been upside down on every vehicle I have bought, but I swear I won't do it again. Well, that is until next time I need a new car. Hopefully not though.

Do you have Gap coverage on your loan? If you don't please talk to your Insurance company and see if they can add it to your car.
Just in case you don't know Gap coverage protects you from being upside down if the vehicle is totaled. Instead of just giving you what the vehicle is worth it pays off your loan. Doing that atleast if it is totaled you aren't scr*wed from the get go.

Sorry can't help any with you wanting to trade in though.

Edited: because It sounded a little rude and I by no means meant for it to.

lisar replied: Some dealers with work with you on that. Make them give you more for the car some will do it just to get you into a newer car cause they are making money on you that way to. I would just check it out.

My2Beauties replied:
Wow when you put it that way, shew! I knew all of this because I've worked with accounting, numbers, finance, etc for so long now and I was in the credit card industry too so I understand APR's, daily periodic rates, etc...but when you sit there and put prices on it and break it down like you did...geez! I do that with my mortgage a lot, I wait to pay within the grace period because it's just more convenient to do it say one of us gets paid on the 4th and it's due on the 1st but we have a 15 day grace period so I pay it the 4th when say Brian gets paid (because I only get paid on the 15th or 30th of each month). I do that all the time...don't even really think about it. I thought about putting it on Auto Trader because it's in excellent condition, I hate the way it runs because it's a V6 and is supposed to have power, pick-up blah blah blah...it has none of that stuff It drives good don't get me wrong, but I'd rather have a smoother less bumpy ride. It's a 4x4 SUV and it's one of those compact SUV's at that, so it may seat 7 but believe me it's not a comfortable arrangement and when I have the 3rd row seat up it leave virtually no space in the back for any storage. Well the list goes on and on as to why I'm unhappy. So I may see what the retail value is. I'm gonna go back out there and look.

My2Beauties replied: OK the private party value for Good Condition (I have some scratches on the front fender) is $7795 (not that much better). The retail value is $9805. It sucks so bad how something that is only worth a trade in value of $6500 can be sold for $9805 I can't get much closer to what I owe unfortunately.

lovemy2 replied: We always end up upside down on our cars - it sucks but we never hold onto a car long enough to pay anything down on it

Try a few dealers - just cause the payoff and blue book numbers are what they are doesn't mean you can't get a decent deal - remember some dealers will do anything to make the sale so - go check it out and go from there....

Cece00 replied: I second Honda's. I love my honda, DH has one too, my mom has owned all honda's except for one (and she HATED IT, it was a dodge) and she bought a new one last yr.

I also would do what I could to pay off as much extra towards the loan as you can afford to every month. It should make a difference.