thinking about trading in my car

[mnmgrisard]

The warranty on my vehicle just expired and I'm interested in trading it in. It has 102,000 miles 2004 Yukon. I purchased it for $24,616 and the bank says I still owe $20,000 WTH!!! I couldn't believe it. I understand my interest is high (14%) but to only have paid $4k in 2 years, this is highway robbery!!

 

On KBB my car is valued at $7700. Do you think it's realistic if i could trade my car in without putting too much down?

[Daddy]

OK. You are saying you are about $17,000 upside down. You go into the dealership to buy a 2010 for $25,000. You put no money down. They hit you upside the head with the interest rate again. You now finance $42,000 at 14% (most likely higher since you are a "high" risk loan). Your payment is about $977 a month for 5 years, assuming you put down the TTTL. When the warranty is up, you continue to do the same thing.

 

 

Now, 1. Would you loan you this money if you were the bank?

 

2. Do you really think it is smart to go add on more debt just because the warranty is up?

 

I don't know why people think 100,000 miles is the magical breaking point for a car. You can drive that thing forever. Just drive slow and pay fast. Good luck.

[Daddy]

My bad, you are about $13k upside down. Still, bad idea. But I doubt any bank would even go near that loan.

[MarvBear]

The warranty on my vehicle just expired and I'm interested in trading it in. It has 102,000 miles 2004 Yukon. I purchased it for $24,616 and the bank says I still owe $20,000 WTH!!! I couldn't believe it. I understand my interest is high (14%) but to only have paid $4k in 2 years, this is highway robbery!!

 

On KBB my car is valued at $7700. Do you think it's realistic if i could trade my car in without putting too much down?

 

 

I believe it would be realistic if you were to put the amount of your upside down portion in cash, or very very close to that amount.