Overhaulin'

I am about $3000 upside down on a car loan and I am wondering if there is a way for me to trade it in?

I got screwed on my first car purchase about three years ago, between the sales person and the bank. I ended up paying just about 3000 more than the vehicle was worth, and that is how I got into the situation. I have been on time with every payment, and I am now in an area where my current vehicle is not suitable for the climate. I live in Alaska, with a rear-wheel drive car. Not a good combo. Any help or advice would be very much appreciated.

Public Comments

1. It is possible. My husband used to work for a dealer and there were putting customers on the road who were $10,000 upside down. It was very tough, but because of many factors they were able to get them done.
2. The dealer does not care about his customers financial situation. the only he is concerned about is if you are able to buy a car from him. That's how you got in this mess. If you owe $3000.00 more then your car is worth on the retail value,you will be shocked when you trade it in and the dealer only gives you wholesale or trade in value. All you can do is eat the amount that you owe on the vehicle and be more careful next time.
3. Tehr's always a way. Let's say you new carr costs $10000, you end up paying $13000 for it. That is, the $3000 diffreence will be rolled up into the new price. Alaska huh? You might want to get a 4x4 for there...
4. Look for a new vehicle with a $3000 rebate and trade it in. the rebate will absorb the negative equity. All vehicles depreciate and most people do have some negative equity. Usually the amount is higher the newer the vehicle is. Just to let you know, most states will give you a tax credit on the value of your trade as well which helps reduce negative equity as well. 3k on a 60 month loan equals about $60 a month. Hope this helps. Good Luck
5. You can certainly trade it in.... but it might be worth less in Alaska than in lower 49 states because I would imagine RWD is not very popular there. If you do trade it in, you should expect about $5k to be rolled in to the new loan. Meaning if you buy a $20K car, it'll actually be a $25K loan.