Trading in a car I owe on?
I’m paying on a 2017 ford escape, in december it will be a year of me having it. I want to trade it in for a sedan, I drive a lot so something better on gas is ideal. What are some tips? should i wait until i’ve paid it off atleast a year to trade it in? i owe just under 22,000 on it, should i wait to bring the loan down a little bit? i don’t really understand this process so any tips will help! my car is worth about 13k now, should i aim to buy a car around that price?
- ANDRE LLv 76 months ago
You said in one comment that you have no actual reason to change cars. What you wish to do will waste many thousands of dollars on your part.
To trade your car, you would have to pay it off. That means ponying up $22K and you'd only get $13K in value for that, so you'd be essentially setting fire to $9,000. Which is a very, very stupid thing to do.
Stick with this car, and it's payments. You've already made that bed, now you have to keep sleeping in it.
- gLv 76 months ago
Your Escape is not yours to trade, Tony, it is still owned by the lender.
To have the ability to trade the Ford you would either have to pay off the loan or have someone else assume the remainder of the loan.
For the latter to happen the new leader would apply the $13k to the loan amount of the new sedan. In essence digging the financial hole you are already in even larger.
- John AldenLv 76 months ago
Owe 22, worth 13. You are 9,000 in the hole. You should keep it until your negative equity is smaller.
- River EuphratesLv 76 months ago
When you drove your Escape off the lot it depreciated - horribly.
Trading it back in a year later (if they would even let you) would be a huge mistake - because they are going to give you as little as possible for it (especially assuming you don't have any money to use for a downpayment - so they aren't going to talk deal).
When you drive the replacement off the lot, it will depreciate as well - leaving you with a massive debt and a massive car payment (for a long time). Your best bet is to keep the vehicle you already have for at least a couple more years, watch for deals on gas (a lot of grocery stores have programs that give discounts on gas), and keep unnecessary driving to a minimum.
Keep your tires properly inflated, and do regular maintenance to keep your mileage from suffering.
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- babyboomer1001Lv 76 months ago
You will have to check and see IF you can trade it in for another. It may have to be paid off before you can.
- Anonymous6 months ago
Wait how the hell do you owe 22k on a 13k vehicle? Did you get like a 6 year loan or something? I feel bad for you.
- SnezzyLv 76 months ago
You're grasping at straws.
Find a way to make great gobs more money, and get rid of your debt.
Hint: You cannot borrow your way out of debt.
- NeverLv 76 months ago
You are about $9000 upside down. Which means you will not be trading it for 3 years at best. Unless you can plop down about $7500 in cash.
When you are in a hole, STOP DIGGING.
You overpaid by a ton when you bought or something. Should not be upside down anywhere near that much. BIG MISTAKE. Or you are underestimating your cars value or both.
- KayleenRLv 76 months ago
wow do the math. You owe $22000 on a car worth $13000 and you want more debt? Never a borrower or a lender be. Who is the mug?
- 6 months ago
i did that once