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I have a 2004 Honda Civic EX Sedan very nice low miles but we need something bigger. We have had it for 2 years will the depreciation catch up to what we own on it soon? We owe 3,000 over what its trade in value is. What to do? Do values and what you owe level out and at what time?

4 Thoughts on How do you get out from under negative equity without rolling it to a new carloan?
  1. Reply
    hottotrot1_usa
    June 9, 2011 at 10:58 pm

    Your best bet is to wait on that new car. Keep making payments. Yes, eventually the value of the car will exceed the loan balance. How long is the term of the loan? Obviously, at the end of the loan, you’ll owe zero, and the car will be worth something.

  2. Reply
    MIss.understood
    June 9, 2011 at 11:40 pm

    No you will have to eat that loss. What you have to do is either roll it into a new loan or pay off the difference from your old car out of your own pocket. Your better bet would be to not trade it in, but sell it for more on the market yourself. to a private buyer. You will get more.

  3. Reply
    Spock (rhp)
    June 10, 2011 at 12:17 am

    selling to a private buyer should beat the ‘trade-in’ value some — and 3,000 difference seems like a lot to me.

    otherwise, you wait and keep paying, or you pay down a chunk of cash to get out from under. or roll over the excess — if you can even find such a deal these days.

  4. Reply
    godged
    June 10, 2011 at 12:48 am

    How soon is soon? Honda’s hold their value much better than some cars, so you may find yourself in a better situation down the road. But if soon is a month or two from now, it is unlikely you are going to see any change.

    New cars, late model cars are typically a bad investment.

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