Negative Equity
5 Year Member
Joined: May 2018
Posts: 2,453
Likes: 849
From: Southeast PA
. Save your money, pay off whatever you are paying on now and don't buy another new car until you can pay for it in cash
. You laugh but you'll be a multi millionaire and be able to retire early. THEN you can get the "want", any one you want
Last edited by Wicked ace; Oct 18, 2018 at 05:31 PM.
Senior Member
Joined: Jun 2017
Posts: 2,159
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5 Year Member
Joined: May 2018
Posts: 2,453
Likes: 849
From: Southeast PA
Man, tons of financial advisors in here. I had a bit of negative equity rolling into my truck. However, I paid it off in cash. It wasn’t near 17k though, not even close.
op, have GAP on your current ride? Lol.
op, have GAP on your current ride? Lol.
5 Year Member
Joined: Aug 2018
Posts: 3,472
Likes: 1,380
From: Damascus, MD
So what is the real difference here between what he owns now and what he wants to own? He already has a vehicle with $17k negative equity. The issue is he wants another vehicle and will simply be transferring that negative equity to the new vehicle. If he gets a great year end deal on an '18 he might end up closer to even (say a $65k MSRP for $50k). The fact that his new lender is willing to roll an existing loan into his new loan so that the loan to value ratio is negative really is immaterial.
If he can afford his current payment, and if he can afford the new payment, I don't see an issue. Option one he has $17k negative on an auto loan driving a car he doesn't want. Option 2 he has (probably under) $17k negative equity on a vehicle that he wants to drive. Only real difference financially is the higher payment and if he can find a lender willing to loan him the money.
If he can afford his current payment, and if he can afford the new payment, I don't see an issue. Option one he has $17k negative on an auto loan driving a car he doesn't want. Option 2 he has (probably under) $17k negative equity on a vehicle that he wants to drive. Only real difference financially is the higher payment and if he can find a lender willing to loan him the money.
5 Year Member
Joined: Feb 2012
Posts: 13,851
Likes: 2,739
Either way you wind up paying for it, whether its the depreciation on the existing one, or the roll over to a new one, you pay for it. No matter how I looked at it, the Red Devil would have some NE to roll in, but was able to keep it to less than $1500, but in the end, I still spent and financed less on my new truck than I had in the old one.
In my case, regardless if it was an XL or a Platinum, the NE was the same. In the OP's case, $17K, Oh hell no, that is a very bad move.
In my case, regardless if it was an XL or a Platinum, the NE was the same. In the OP's case, $17K, Oh hell no, that is a very bad move.