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I need some advice.....I impulsively traded my car (2014 Hyundai Sonata -turbo) in for a NEW one....back in November....the ONLY reason I did this was, I was behind 2 car payments and I thought they'd repo the car...I in my infinite wisdom "thought" it would be better to trade in for a NEW car and have an extra month to come up with the $$$...fast forward 4 months and I am miserable in this truck.. (2018 HyundaiTuscon)...my car note is almost a mortgage payment... ($727) plus ins....makes my car overhead a stack a month alone...would it be better to trade this in ASAP for a smaller car or ride this out for the next 5 years....?!?!?!?! #help

 

 

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Ouch,  you are so upside down, I'm afraid to even try and look it up.  A smaller vehicle might not work so well in that situation.

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10 hours ago, babygirl1124 said:

 

I need some advice.....I impulsively traded my car (2014 Hyundai Sonata -turbo) in for a NEW one....back in November....the ONLY reason I did this was, I was behind 2 car payments and I thought they'd repo the car...I in my infinite wisdom "thought" it would be better to trade in for a NEW car and have an extra month to come up with the $$$...fast forward 4 months and I am miserable in this truck.. (2018 HyundaiTuscon)...my car note is almost a mortgage payment... emoji3166.pngemoji24.png($727) plus ins....makes my car overhead a stack a month alone...would it be better to trade this in ASAP for a smaller car or ride this out for the next 5 years....?!?!?!?! #help

How did this strategy work last time?

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this is my first trade in .....the note on the last was doable I just panicked at the thought of repo...i was suspended from work for a while with no income i figured that the extra 45 days would help but it's too high of an overhead now....k also am currently in a ch 13....so I may be stuck....I should have just put the other can in the plan

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I'll try to be gentle ...

 

The problem with swapping out of a new car in the first year of ownership is the fact that it's resale value takes a huge hit the minute you take possession and a resale value is based upon a "used car".   That loss in value typically runs about 10%.

 

So, when you did your car swap as a tactic to avoid foreclosure and buy some time, you rolled that amount into the new loan (along with something like 3 payments that were due).  And now, you've incurred the "drive off the lot" value impairment on this car.  All combined, it looks like you owe $10k+ over your current trade-in value on this car.

 

Now, the "drive off the lot" penalty isn't something to beat yourself up over (in itself).  Every new car buyer incurs it; it's simply the cost of having the satisfaction of owning a car whose history you intimately know (which, personally, I find helpful in taking care of the car long-term, and so happily accept).

 

However, hindsight being what it is ("20/20"), it's fair to say that the vehicle swap wasn't you best option at the time.  What's done is done.  The question is what's your best option now.

 

Even if rolling the car once again (for something more economical) was attractive, it's not likely an option.   You're not going to be able to borrow $24k+ against a $14k car, plain and simple.  A lender might permit financing for 120% of the car value (as it appears was the case with your swap).  But your financing need is well beyond that limit.

 

It saddens me to say this, but your 2 most viable options are to stick with your current loan terms and make them work (until such time an improved credit scenario positions you where you can refinance at a lower rate, possibly through a credit union), or to default on payments.

 

I have no doubt either of these two options present significant hurdles to be overcome.  However, as to the option to roll over into another vehicle ... that's like a dead end proposition.

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