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Need advice on upside-down car purchase!

Old 02-06-06, 01:14 PM
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Need advice on upside-down car purchase!

Iíve got 2- 2002 Hyundai Accents Iíd like to trade in for 2 larger vehicles. I still owe quite a bit on each to my credit union. My credit union has agreed to loan me $40,000 towards 2 new used vehicles, but they will only approve the loan for the value(s) of the new used car(s) Ė i.e. I canít add any upside-down amount to the loan. So, if I trade in both cars at the dealership, Iím still gonna be upside-down on both cars by a couple of thousand. Am I screwed, or is there some way the dealer can manipulate the numbers (and be willing to) so that my CU will still finance 100% of the purchase price?

Last edited by Patrick G; 02-06-06 at 01:28 PM.
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Old 02-06-06, 01:15 PM
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Old 02-06-06, 01:17 PM
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Old 02-06-06, 01:18 PM
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i can help you with an upside down pineapple cake?

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Old 02-06-06, 01:19 PM
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Originally Posted by Numanoid
What'd I say?
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Old 02-06-06, 01:20 PM
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In case anybody seriously doesn't know, "upside down" = owing more on the car than it's worth.

But I've never been in that situation. But it's your own fault for owning a Hyundai.
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Old 02-06-06, 01:21 PM
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Dealers can really work just about any magic if you have good credit and you are willing to pay them to do so.

You might be better off just having the dealer match the terms of the credit union loan and work it all through their lender and leave your CU out of it. I wouldn't even think about doing this if your CU was willing to do what you want, but in this case it may be a better way.

Just be more cautious than normal when asking a dealer to 'help' you with a situation like this. They will try their hardest to take advantage of you for 'helping' you out.
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Old 02-06-06, 01:22 PM
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yes.. The dealer jacks up the price of the new car, maybe to MSRP,(not over), so he can give you more for your trade. Hopefully your only upside down by a couple of thousand.
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Old 02-06-06, 01:24 PM
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Could you at least get what you owe on them by selling them yourself? Usually the private party value is going to be more than trade in value.
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Old 02-06-06, 01:32 PM
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My advice would be to hang on to the Hyundais for a while longer and try to pay down those notes on them so you're not upside down. As long as you are, you'll be at the mercy of the lenders.

And NEVER involve a dealer in financing a vehicle. It's a great way to get raped financially.
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Old 02-06-06, 01:33 PM
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I owe $6500 & $5200 on the cars. And according to NADA, the avg. trade-in value for each is $4800 & $4275 respectively.

Last edited by Patrick G; 02-06-06 at 01:40 PM.
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Old 02-06-06, 01:34 PM
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I wouldn't be trading now, but we've had 2 new additions to the family and you literally cannot fit 2 car seats in the back of those Accents and still have enough leg room to drive the car.
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Old 02-06-06, 01:42 PM
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Are you unable to pay down the existing loans first?
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Old 02-06-06, 01:45 PM
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Originally Posted by Duran
Are you unable to pay down the existing loans first?
No, we've had too much expense associated with the adoption of the first child and the impending birth of the 2nd. If the cars weren't literally too small for 2 car seats, I'd wait.
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Old 02-06-06, 01:49 PM
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Originally Posted by Vibiana

And NEVER involve a dealer in financing a vehicle. It's a great way to get raped financially.
Not true if you know what you are doing, can work simple math, and spend a few minutes going over the forms before you sign them

I find you can work a better deal on the car if you let the dealer finance it, they generally get a kickback for completing the loan.

This means find the best finanacing you can on your own, at say a credit union, work the numbers of what your payments are (simple Excel spreadsheet) bring those numbers with you to the dealer. If for some reason their financing ends of being higher per month than the numbers you worked, figure out why.
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Old 02-06-06, 02:00 PM
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I would probably only get rid of one for now. And then buy a honda or toyota so that you don't end upside down again.
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Old 02-06-06, 02:38 PM
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So if you sell the car on your own you could break even. thats the trade in value and not the retail.
Keep in mind that you get a tax credit by trading in a car. Assuming your sales tax is 8% and you trade a car in at 5K and your buying a new car for 20K you only pay taxes on the 15K not the 20K. So thats about a ~$400.00 credit. So you can look at it this way. instead of getting 5K for your trade its like getting $5400.00.
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Old 02-06-06, 02:46 PM
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I would probably just trade in one at this time. And how did you end of with two Accents? I can see maybe being drunk and getting the first one, but two?
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Old 02-06-06, 02:52 PM
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Originally Posted by cpgator
I would probably just trade in one at this time. And how did you end of with two Accents? I can see maybe being drunk and getting the first one, but two?
My wife and I both had old cars and were sick of dealing with repairs all the time, so we decided to go buy 2 dependable new cars with excellent warranties so we wouldn't have to worry for a while.
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Old 02-06-06, 03:01 PM
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Originally Posted by Patrick G
No, we've had too much expense associated with the adoption of the first child and the impending birth of the 2nd. If the cars weren't literally too small for 2 car seats, I'd wait.
I would argue that you can't afford a new (used) car at the moment. If you can't afford the $1k to pay down the lown so you're no longer upside-down, then you probably shouldn't be taking on additional debt in the form of a vehicle loan. You will be upside-down on that one as well if you roll over the remaining amounts on your current vehicles.
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Old 02-06-06, 03:12 PM
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Do you have a car max or something similar near you? I've sold three cars to them in the last couple of years - they always gave me several hundred (to several thousand dollars) more than a dealer would offer. You could also look at buying a used "big" car there in return.
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Old 02-06-06, 04:03 PM
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Perhaps you should wait until you're more financially solvent before embarking on another car purchase.
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Old 02-06-06, 08:01 PM
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I agree with what others have said. Besides IMHO if you got to newbies what are you doing trying to figure out a way to have a $40,000 loan?

If it were me, I would sell ONE car myself and buy a used reliable (certified with warranty) car. Maybe just a 2 year old car, but at least this will knock out that initial depreciation hit. IMHO, a 2 year old certified Accord or Camry would be perfect for your needs and not kill your budget to badly.
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Old 02-06-06, 09:16 PM
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Originally Posted by The Bus
Perhaps you should wait until you're more financially solvent before embarking on another car purchase.
...Plus you need to really rethink your financing options. I know it seems like a good idea to buy a new car due to repairs and what not, but if you cant afford it, then you cant afford it.
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Old 02-06-06, 10:14 PM
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Originally Posted by The Bus
Perhaps you should wait until you're more financially solvent before embarking on another car purchase.
Yep.

And I'm sure you can put two car seats into an Accent. It might be tight, but they'll fit.

But if you really *want* new vehicles, try selling them by yourself. You'll get $1,000 to $2,000 over the trade-in value.

And are you sure you can't get one new vehicle now and keep an Accent?
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