Negative equity

[FNR8DRZ]

Has anybody dealt with negative equity with a car?

My cars value has dropped drastically. I owe 25k and its only worth 15k, with 44,000 miles.

I feel the more miles I put on it 5he faster it will depreciate. Its my only car..with a 70 mile one way commute.

Any suggestions? Should I roll over the negative to another car?

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[Dude]

If it runs good keep it going as long as possible

 

[rocks]

Rolling in $2k or so is one thing but $10k is nuts.

 

[Murrow]

At this point, I'd say just take good care of it and stick with it. Personally, I want out of mine as well, but I'm reluctant because of the financial hit, and I'm not even underwater. If I were in a negative equity situation, I would ride it out, especially if it were $10k. Remember -- you don't lock in that negative equity until you sell it.

 

[TheX]

Bite the bullet and keep paying it off. The negative equity gets worse with each trade-in.

 

[FNR8DRZ]

Thank for the feedback.

I will never buy another VW....They depreciate in value way too fast.
I am afraid that by next year it will be worth 5k with 60,000 miles and I will still owe $18,000. Sucks!

 

[rocks]

Thank for the feedback.

I will never buy another VW....They depreciate in value way too fast.
I am afraid that by next year it will be worth 5k with 60,000 miles and I will still owe $18,000. Sucks!

It will still be worth over $10K next year.

 

[FNR8DRZ]

And i will still owe $19k

 

[rocks]

And i will still owe $19k

Wow! Only $1K off the principal in one year? What interest rate are you paying? Looks like you'd better run the BS until the wheels fall off.

 

[jkernitzki]

I decided years ago that if I couldn't just write a check for it, I would wait until I could. My last car was a lease that I bought out at lease expiration, then traded it in a couple years later on the BS and paid the balance in cash.

The only thing I would've done differently is put about $28K of it on the Chase card, then the rest in cash and pay the CC in full when the bill came (which I already do anyway). It's all about the points, y'know!

 

[rocks]

I decided years ago that if I couldn't just write a check for it, I would wait until I could. My last car was a lease that I bought out at lease expiration, then traded it in a couple years later on the BS and paid the balance in cash.

The only thing I would've done differently is put about $28K of it on the Chase card, then the rest in cash and pay the CC in full when the bill came (which I already do anyway). It's all about the points, y'know!

Sounds good, as I'd like to do the same but dealers seem to only allow a $3500 limit on a CC.

 

[jkernitzki]

Sounds good, as I'd like to do the same but dealers seem to only allow a $3500 limit on a CC.

Probably to limit their fees. My dealer told me I could pay any way I wanted, never mentioned any limitations. Should brought in $38K in pennies.

 

[Bill G]

Tried years ago to buy a Saturn using credit card. It was a new card, with a high enough limit to buy car using only the card (double points for limited time), and planned to pay it off when the bill came in.
The dealer declined, said they only took credit cards on repairs and service (I could buy an engine, trans, and differential on credit but not the car <lol>). So I wrote him a check, and said “thanks”.

 

[Murrow]

And i will still owe $19k

You could potentially look into refinancing it.

 

[TheX]

I don't have a car payment, or any debt but not everyone can do that. A lot of people are upside down on car loans, and dealers are happy to help make it worse. The monthly payment is NOT what's important.

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