Might get rid of my truck

As far as trade ins go, you can only trade in a vehicle once its fully pad right?



If I sell the truck myself how much should I sell it for? Since my balance is 29k thats how much I should sell it for right?
 
man unless ou want to get ganged by everyone in the dealership I would just suck it up and either pay it now or try to lowwer your payments by adjusting your loan ..If you like the truck and want to keep it i would say ..adjust it out.. but if your not it to the truck I would def. get something cheeper..
 
Blackmirror said:
As far as trade ins go, you can only trade in a vehicle once its fully pad right?



If I sell the truck myself how much should I sell it for? Since my balance is 29k thats how much I should sell it for right?
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BradE has pretty well laid out the numbers for you.



You can trade in a vehicle while you still owe on it, but it is very wise to have some equity in the trade in. Otherwise, you are carrying a very heavy load with negative equity AND a loan on another vehicle.



You say your balance is 29K. Yeah, it would be nice to sell it for that, but in the real world you are asking someone to bail you out of a situation where you owe more than it is worth. You would be pricing the vehicle for far more than market value, and a prospective buyer would say why should I pay more than the fair market value for the truck. Where is there any "deal" for the prospective buyer? Also, each vehicle has a loan value, and 29K is way more than anyone could just go and borrow, unless there were special circumstances. (Almost a miracle)

If the payments are too high or you don't want to refinance, maybe you should look at trading for a $5K beater and add the $8 or $9K negative equity (if you can get that financed) and pay on this for a couple or three years and when you have it almost paid off you can then jump back into a newer vehicle and higher payments.

What you are proposing now with a 9K equity and 34K new car will get you in a real mess financially, if you are struggling with a $600. monthly payment now. JMHO
 
Easy....stop making payments....the bank will reposess it.....and they will sell it at auction for 20K and eat the rest. You are free and clear and just got out of 9K of debt. You get bailed out but sadly won't get another car loan for a long time.



I found you should put at least 20-25% down in order to keep your pay off on a 5 yr loan below the cars market value.
 
BradE said:
If KBB on your truck is $23k that means a dealer will pay about $19-$20k for it. I'll go with $20k to make the example easier.



Balance outstanding on truck = $29,000

- Dealer trade in ($20,000)

---------------------------------------------

You have $9,000 negative equity.



If the Evo you want costs around $34k you'll be paying the monthy payments on the FULL $34k, PLUS the $9k negative equity you owe on the truck.



In simple terms, you'll be paying $34k + $9k, times interest, divided by the term of your new loan.



In the end you won't be reducing your monthly payments, you'll probably be increasing it, your too far upside down already.
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Ditto !

Plus they don't deal on Evo's... ( and if you would decide to lease you looking at $700+ with a score above 713 )

Refinancing might help or just keep making those payments...

Sorry, Man...
 
DETAILKING said:
Easy....stop making payments....the bank will reposess it.....and they will sell it at auction for 20K and eat the rest. You are free and clear and just got out of 9K of debt. You get bailed out but sadly won't get another car loan for a long time.
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You don't get out of any debt. The bank isn't going to eat a $9k difference if they repo the car. Your still on the hook for that $9k, and they will sue you to get it if need be.
 
BradE said:
You don't get out of any debt. The bank isn't going to eat a $9k difference if they repo the car. Your still on the hook for that $9k, and they will sue you to get it if need be.
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Yep,

You can get out of $9K if you would file a bankruptcy,but you would get in big trouble fot the next 10years...
 
Thank you guys for all your help and suggestions. It is very appreciated. I didn't expect this thread to get pretty long but glad it did. Ok here's whats up.....Went to a Mitsubishi dealer yesterday to find the trade in value of my truck. I thought it was going to be low but it ended up being 28k and the Evo I'm looking at is 29k(RS model) for a brand new one or I can get a preowned one for maybe 27k. Since my payoff is 29,200 I will have 1k of negative equity right? So 1k is added on top of the new or pre owned car so it isn't that bad is it? Most likely I'll be looking for a pre-owned car with low mileage.
 
Do you know what the payments would be?



I'd say to go for it.



Once a friend wanted to trade her VW Corrado (5 or 6 years old) that turned out to be a lemon for a new VW GTI & the VW dealer offered $5000 for it ( I guess they knew how much work the car needed to run "normal"). Of course she didn't traded it in so she went to a Honda dealer and they gave her $10000 for it and she bought a Civic Si that night. Next day the finance department kept calling her that they "changed" their mind about the trade in.

(They sure had some nerves!!)
 
Yeah one of the dealers said $500/month



I'm still shopping around going to different dealers and trying to see if I can get a higher trade in value for the truck.
 
Blackmirror said:
Yeah one of the dealers said $500/month



I'm still shopping around going to different dealers and trying to see if I can get a higher trade in value for the truck.
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If the price is $29K,the grand total would be about $33K (sales tax.,title, license,negative balance...)With 60 months and 0% financing it's $550 and, if any %,which more then likely going to happen,you looking over $600.They BSing you.
 
Sell the truck and get a beater so you can save some money. When you have a nice down payment saved up then go and get what you want and can afford. I wouldn't trade the truck at this point as is seems a better idea to refinance it if you can and lower the payments.



And yes, if you stop paying for it and they repo it, they will sue you for what they don't recover at auction.
 
Blackmirror,



I don't mean to discourage you, but using the Loan Amortization spreadsheet template on Excel, the used Evo plus 1K negative equity on your trade in (which your dealer is probably bait & switch you on) equates to a total loan amount of approximately $31,000 after tax & license. A 5-year loan on this amount assuming an interest rate of 5% (which I think is very optimistic) would be $585/month. The new Evo would be $623 a month.



LoL, I shouldn't talk though because my car payments are just slightly below my mortgage payments! I'm like the dream customer for new car dealerships.
 
I just did the math real quick on my financial calculator and Tony is right, it's $585.01/month. That's not much in real savings compared to what your paying now. Plus, you also need to consider the added insurance expense, I'd say the Evo is going to cost more to insure than your current vehicle.



If your really looking to reduce your monthly payments you need to be looking at much cheaper vehicles, I'd say $20k for less for the whole deal, that's including any negative equity in your truck plus the purchase price of the new vehicle.
 
Blackmirror said:
I think I might have to get rid of my truck. Now I don't really want to but have to. The monthly payments of $600 a year are killing me:wall ! I mean I could pay for it but then I always feel broke. It is a $37k truck! I'm thinking of getting an lancer evo since its way cheaper and the monthly payments should be half of what I'm paying now for the truck. NOw I don't know anything about trading in cars because I never done it before. So here's my question. Even though I haven't finished paying for the truck, can I go to a Mitsubishi dealer and tell them I want and evo and want to trade in the truck and use that for a down payment? I need all the help I can get so any suggestions are appreciated. THanks!
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Buy a '03 Cobra
 
you could always get a Baja turbo it's a sleeper.... you own any evo that will come your way and still be carring anything you need in your truck bed plus it's 10k cheeper(new)
 
what the others have said, your looking at cars that are too much for you right now. Even at $500/month you will not be saving over your current payments since you will have 5 whole years at $500, where the truck has maybe only 4 years left on it? Sure you are saving per month, but in the long run your paying more, and if your fine with that then why not just refinance the truck?



It's a matter of $28k truck refinanced at 5 years



or a $30k car financed at 5 years.
 
Like others implied, you got in over your head with the truck, and all you're doing now is repeating the same mistake. Have you also priced out insurance for the Evo? Gas? That can't be cheap. Then you're going to want to mod, etc...



Not to discourage you, but IMO it's time to suck it up and either save up some money, or look at other cars. If I were you, I'd look at used cars, maybe a WRX, e36 M3 (95-99), or something along those lines. Take some driving lessons (after you learn to drive a stick), do some autocrosses, maybe a track day. That's how you have real fun in a car. Trust me, you don't have to have the latest and the baddest to have fun--you just need to get the full potential out of whatever you have. If you never learn how to "really" drive, the car (especially the Evo) will always be better than you.



Good luck man.
 
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