Is it feasible to Trade in my 07 for an 03-05 to "break even"?
I want to trade my 07 chevy Aveo for an 03-05 mid-size pickup. im about 3k upside down due to being 5k upside down in the car I traded for the chevy.
Pay off amount = 17k
Car Value = 13-14k. (mint cond.)
APR=12%
If I get an slightly older model pickup (03-05) for less than what my 07 Chevy is worth, since new pickups are worth more than new Aveos, what happens to my payments? to my finance rate? to my credit score?
All in all, should I do this?? I wanted to save gas but Aveos are pieces of crap I need something else, and I'm not worried about MPG anymore since i'm moving near the job.
Well I would say you are probably a bit more upside down than the $3K your expecting. I do not think an 07 Aveo would be worth $13-14K on trade. That may be retail value for if you sold it yourself.
If you found a older model pick up where it gave you enough back to eat some negative equity it could be possible. Say the pick up was sold to you for $10K and they allowed you $12k for your trade then they would be cutting you back $2K so that would effectively reduce the amount of your new loan by $2k so your balance on the aveo is $17K - $2K = New loan of $15K. Of course you will need to factor in taxes, tags etc.
The problem may be finding a truck to trade for that can carry the amount you are looking to finance. Most lenders will only do 120-130% loan of the value of the car.
Be careful as you do not want to keep in your pattern of rolling negative equity from one car to the next as it will end up really biting you as sooner or later your going to have to pay for it.
Mint Condition - Nobody Does It Betta [3 Boys 12' Edit]
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