Overhaulin'

upside down car loan..help please!!!?

I have a 2004 Mazda 3 that I owe 14,000 for. The car itself is worth 12000 and the dealership wants to only give me 11,500 for it. I am trying to get a cheaper car and wish I could lower my payments, but it doesn't look possible. They are telling me that the bank will only fiance me for 11,500. Need help!!! what do I do? is it possible?

Public Comments

1. the only way its going to be possible is for u to buy something really cheap or find another dealer that may offer you more thats about all you've got besides selling it yourself
2. Sell it on Craig's List or refinance. Or pay a biker to blow it up. No, don't do that. You'll do Fed time for that one.
3. If you do get a new car you still are in the negative for 2k, now you have to add that to your new loan and your car payment WILL go up or be longer. The best option you have is keep the car for another year or so.There is no way to get a cheaper car right now. You are just gonna add more money to your loan if you try to get out of it right now. Try to sell it to someone, put a ad in the auto shopper. Make sure you have a ad w/a pic. Clean the car up real good...Ask $15200, ...you can always drop it to a little over 14k. You gotta get more then 14k to get out. No dealer is going to give you more money, They will show it as more. but you will get jammed up again. There are 2 books dealers use. The book they show you(blue book) blue book is the devils bible and the book they use (black or grey book) with the real numbers Its a numbers game and the dealer always wins. Sell it or drive it, thats your only options
4. This question pops up in here often. How to get out of an 'uspide down' situation. You already know a little more than some. If you are approved for $11,500, then that is the max you can finance. If you are $2500 upside down, that puts you on a $9000 car. But - it sounds like you have no cash to go in the deal either. So now you are looking to finance sales tax, dmv fees, etc. that means you need a $7500-8000 car. BUT - tht puts the deal out of shape for the bank. You are now asking the bank to loan $11,500 on a car worth $7500. This is called an over-advance. You have to have good credit to get this type of loan, and based on the fact you only got OKd for $11,500, I doubt you can get much advance beyond the price of the car. You are looking for 150% of the value of the car. Not many banks will do that even if you have good credit, especially on a car worth 7500. But ask this - do you WANT to owe $11,500 on a car that is being sold for $7500? If it is being sold for that, when you take it home, it will be a $5-6000 car. So do you WANT to ower DOUBLE the value of the car? I hope not. Your best bet is to stay in the car you have. Make the payments, and pay down the balance. Try workin a deal in a year or so, hopefully you will be more in line by then. You MIGHT get a local bank to finance you the balance on the current car at a better rate. But be careful. If you do that, do NOT extend the term of the loan. If you only have 39 more payments, dont refinance for 60 months. You may help the monthly picture, but you have screwed up the long-term picture