Wanting a different car, have an upside down loan?

I currently owe a little over 8000 on a car that has a current trade in value of around 5000. There is a car I am interested in that is for sale for 1800 from a private seller. Is it possible to work out a scenario where I have the loan refinanced or payed off, get rid of my current car, and have a new loan making smaller monthly payments on this other car? I’m new to car buying/leasing so any information would help thanks.

8 Answers

  • 1 year ago

    You’re going to lose $3000 if you sell a car for $5000 but still owe $8000 on the loan.

    Once you settle the debt on the old car you should be able to get a loan to buy the $1800 car.

  • 1 year ago

    Nope. Just have your car Traded in at a Legit Dealership, Carmax, Gmc, Toyota, Nissan and add the negative $3k to the new car why create more bills 4 your self...

  • 1 year ago

    I am in the same position as you I have a GMC I owe $8,500 on and I really want a Chevy truck selling for $18,000 I can get a new loan for the 18,000 with $1,000 down and $250.00 a month but I would still owe on the $8,500 @ $309.00 per month I wanted to just add the $8,500 to the $18,000 but the GMC is worth nothing so that’s a no go, Now both cars are from the same car lot!

    This is what the sales men says to me and I quote “ pay the $1,000 as the down payment the $250.00 per month then just let the finance company take back the GMC”. Really that’s the answer to this problem! Yep he says you’ll have the truck you want your payments will be $250.00 and your credit score goes to crap for defaulting on the 8,500, Bad thing is I’m actually thinking of doing what the salesman says it’s not like I’ll be looking for another loan to buy a house or anything (“RIGHT?”)


    Stuck in the mud in Arizona

  • Anonymous
    1 year ago

    You cannot refinance your way out of the deep hole you're in and buy that cheap car unless you've got about $5000 cash available, or you have a line of credit with a bank that will allow you to take a $5000 loan for any purpose. Your situation is the all-too-common consequence of not doing a little simple math to figure out that the rate of depreciation of the vehicle you bought would exceed the rate at which you could pay it off under the terms the loan you accepted. You have our pity. There are millions of ignorant and unsuspecting dumbasses just like you that have been taken advantage of by the car salesmen and their finance companies simply because they failed to crunch the numbers first. Unregulated car finance is the biggest white collar scam since the mortgage banking scandal that ruined the economy and personal finances of tens of millions of honest, hard-working people from 2007-2015.

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  • 1 year ago


    You owe a net sum of 3000 if you trade in yoir car. If the loan is secured on your car then the lien-holder will want immediate repayment of the 3k, OR will hugely increase the interest rate to reflect the fact it’s a much higher risk unsecured debt.

    You then wish to increase your debt by 1800, but for lending purposes the car is worth nowhere near that much, so you’ll have trouble getting any kind of secured loan for it, especially for a private sale. On top of that, it’s a 1800 car so will be an older model which is likely to need more maintenance and is highly likely to have hidden faults. Far more so than a 5k car will.

    You *might* be able to get a far longer term unsecured loan which may have lower monthly payments but will leave you paying every month for many years to come. But you will repay vastly more in total than you already owe, and it will take a steaming dump on your credit score.

    So there is no easy way out and no cheap way out. Earn more and spend less.

  • 1 year ago


    Even if there was, by the time you'd leapt through all the hoops the car you were hoping to buy would have been sold.

  • nt
    Lv 6
    1 year ago

    Not a chance unless you have a credit card with a large limit and you want to put it on there.

    Chances are the $1800 car will be a bunch of headaches too.

    There is no magic getting rid of negative equity. And trading it, if you could, would only make a bad situation even worse.

    Double or triple up on your payments for the next 6-12 months.

    Nobody lends less than $5000 on a car and certainly not for an $1800 car.

    The #1 mistake many people make is always wanting something different. Everytime you change cars, you lose a bunch of value.

    Unless you just get lucky as heck and can sell yours at private party value and buy another at PP value.

    I was a dealer for a dozen years. When I retired, I kept the same piece of crap for 12 years because you always lose a ton of value when you swap cars.

    When my air went out and it was over a $300 repair, I bought a newer car and sold my old one. Got lucky getting $1600 for my old car because I had almost no interest and may have had to lower the price to $900-1000. I found a decent deal on a drug seizure for around private party value. But, in the last 27 months, it lost about $2700 in value. Normal depreciation. I have no plans on getting rid of it for at least 4-5 more years if not longer.

    One trick I learned when I was about 24 and in the middle of a 36 month car loan was, NEVER AGAIN borrow on a car. I paid that car off in 19 months and have not had a car loan since. (I am 56 now)

    When I paid my car off, I kept paying myself the car payment in a dedicated savings account. Then, when I eventually got another car, I had the cash for it already saved.

    Google "Drive Free, Retire Rich" for details.

    And yes, I retired at 40 and am a millionaire. These principles and my thriftiness made that happen.

  • Anonymous
    1 year ago

    your options are -

    keep paying on the current loan and get the $$ for the used vehicle

    keep paying on the current loan til it's paid in full, then look for another vehicle

    find someone willing to pay off the loan for the current vehicle, then you will still need $$ for the 1800 vehicle

    that's about it...oh yes - not possible to get a loan for 1800

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