I am still in slight negative equity on a new car I regrettably bought just over a year ago (feel free to shame me). Soon I'll be at neutral equity on that loan. I know that generally changing vehicles necessarily includes taking a hit on whatever equity the seller is making... But in theory if that is less than what you would save in interest on your loan, could it be worth it? I am curious if anybody has done something similar? Can you even trade a used for a used without buying out the whole loan? Advice in general?
I wouldn’t recommend trading down unless you don’t plan to keep the car for a long time. The driving quality on a good car is worth it—I am saying that because I bought the base model corolla and regret it😀 You can trade in a used to buy a used car.
Pay off the loan, sell it privately, and buy a $3k civic.
Ten thousand upvotes. I sincerely don’t understand why people do anything else.
Yeah I considered this. Though I was thinking more like a $10-$20k Civic.
If you want to stop the bleeding and don't plan to buy a new car in a bit, it does make sense to buy down a cheaper car. I bought down a Corolla which I owned for several years. Not a big deal for many people, but for me it was since I am a car guy. It was the most boring car I ever owned but served me well. I now own a-ok house with lots of equity and a nice Mercedes 2-door, so there is that
Same here. I've had some cool whips in the last 5 years. Hope I can do it like you did!
Always go cheap on the car, house, clothes, food. Practicing poverty when you are actually rich is an amazing feeling and leads to tremendous personal growth
No it doesn't. Your kids will blow up all that money you didn't spend on your 20s
I'm in the same situation. What you need to do is sell privately. You'll easily make $2k+ more than selling to a dealer. Dealers are scumbags when it comes to selling your cars. They buy for less and sell it for way more. You can then probably get an EV ( Preferably lease ). Don't get a hoop-d!
Try selling it to car Carvana.com ...they give good rates and you can get their price online in a few minutes
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Which car did you buy ?
Nothing too crazy, $40k loan. But I'm wanting to get more serious about saving.
And that car is...?