| Posted by: Chris Florence Feb 28 2003, 04:43 PM |
I am trying to work out my finances so that me and my fiance can lessen our monthly payments. So a dealership in the area is running a special, buy one car get one free! I thought this would be a good chance to consolidate some loans. My car is only worth $3,500-4,000 and I owe $9,000; now, my fiance owes $13,000 on her car.
My idea is to trade in both cars and buy the deal that the car dealership is offering. Even though I am upside down in my loan I feel as though I could work the numbers to my favor. The car deal is two Cavaliers for $11,900. Since my car is worth $3,500-4,000 and Alisha's car is worth $13,000 couldn't the new loan absorb my upside down debt. I don't know if this is possible.  [B] |
| Posted by: loanuniverse Feb 28 2003, 06:12 PM |
Dealers usually take into consideration the upside down situation whenever there is a trade involved. Look for the following sentence "negative equity applied to loan balance".
Right now using a best case scenario you have $17,000 worth of cars with $22,000 worth of debt. If you purchase the cavaliers, you will end up with $11,900 worth of cars with $16,900 worth of debt. This is of course assuming that you get credit for the amount that you think your current vehicles are worth and that the two cavaliers which I assume to be used cars are worth $11,900.
Is it possible to structure a deal like that?
I am sure you can and that the dealer might be able to do it for you if your credit is good enough.
Should you do it?
It depends on wether or not you want to change cars, your current financial arrangement and the kind of financing you can get on this deal.
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