Financial help...

[SuperTuner12010]

Going to make a long story very short...
Wanted to buy a used car under 10k, payments of 200 a month maybe. Well somehow ended up with a 21k Mini Cooper S. Overpayed big time.

KBB is only 16k, well payments are begging to kick my ass. Nearly 400 a month and 180 for insurance. So now I am lokking at my options. I know im pretty fucked, and am going to loose the 6k either way. However im still needing to lower my payments. Looking into negative equity and buying cars but a bit confused.

Say I went and traded the 16k blue book value mini in for a miata or something similiar. I know the 5k will be added to the price but will this still lower my payments?

[mercyboy]

Well my uncle works for Nissan dealership....but some of the information may be wrong............this is b.c

buying a mini cooper is not that bad, im just worried about room space and storage....Other than that....every car value is depended on how the vehicle in good condition, the model and year and km....First of all the dealer sells car used ones 10%-20% more than the owners prices on criagslist or kijji since maintenance and inspection are spent to make the buyers feel confident in buying a safe vehicle plus labour :P. also, Usually once the car rolls out of the dealer as a new or used...it will be deducted by 30% on the first year you get it and 10-15% every year after the first purchase. This also varies on the manufacture and model since some vehicle have more instinct value for example Kia lesser value than honda etc....) Plus you should also look at the finance rate if it is 0.9 or 1.2% if you happen to lease (lease is when your just paying montly yet it's not truly yours until it's paid full) By the looks of paying 400 month, you will be paying between 36-40 months...But it's a good thing paying it early for that instead of 72 month, so you have that 3 years left either to trade... i heard it's better to purchase a vehicle with 0.2% or no finance rate and pay by cash instead invest per month or lease...since you won't get taxed(meaning adding money to the vehicle)....so it's mostly up to you, but mostly if you do trade, it depends on some areas. they either trade the car on it's value?.....also insurance is costly on the car you are driving. For me the cb7 only cost me $87 a month on car insurance( $980 a year) Compared to my dad new 2010 land rover lr3 $240 (2500 a year)..Mostly new cars or the car value cost more on insurance than old vehicles.....since once it's in a accident...insruance company can decide on whether the car count as total damage(can't be repaired, so they give you money to how much the car is valued) or repairable......

hope this helps

[ChIoVnIdCa]

Find a dealership to roll the 5k you are upside down into a loan for a 5k car... You will end up owing 10k... You need to have good credit for it to happen..

[turbomaxx]

Be good and sure that you call your insurance company with the new cars VIN BEFORE you do anything to see what your insurance is going to do!!! They can usually quote very close to what actual cost will be, and a miata could well cost the same or more than the mini!!

Good luck, bud, I've been there before too, I really hope you get out with out too big of a hit in the wallet.

[baracuda]

Hardest part is going to be trying to get a financial institution to fund an upside down (Negative equity) loan.

Best thing would be to try and find a car decently under book value. Private sellers are the best to look at for good deals. that way you can roll the negative equity into a car that is under value and end up with a loan that isn't upside down.

Dealers will always quote at least 2k-3k above the highest book out value.

(At the credit union I do loans for, we use NADA to book out values on cars for loans. We use the "average trade value" for cars that aren't new off the lot.**but every institution uses different guide lines.**)

Depending on your credit score, performance and payment history, some banks will go up to 120% of the value of the car for the loan. (or more every place is different.)

[Leung]

My older brother was upside down on a Kia Spectra 5 years ago which he traded in and got an '06 Sentra. His payments now suck major donkey ass, 439 bucks a month at 14% interest. The sad part was the dealer he bought the car at was part of the family to the dealer that he worked for, "family discount" my ass.