Quote:
Originally Posted by PalmerGA
I can assure you, being upside down on a car loan is NEVER a good thing. First: if you're upside down on a car loan, you couldn't afford it to begin with. Second: if you can't provide a down-payment that will cover tax/title/license expenses, you couldn't afford it to begin with. Lastly (and this is the real killer), if you have to finance the payoff on your trade-in, you couldn't afford it (or especially the new car) to begin with.
OP, I assume you are fairly young (no offense to responsible young car owners). If that is the case, NOW is the time to straighten out your finances. Bite the bullet NOW and keep paying on your present car until it is at least worth what you owe on it (preferably more). Rolling over loan balances onto new loans will KILL YOU in the long run. You may NEVER be able to recoup if you continue to live on the financial edge. Cut your losses now (or as soon as possible) and you will be MUCH better off down the road, when you are looking for a home, second vehicle, etc.
**NOTE: I am not a financial advisor, economics professor, or the like. I learned the hard way. Been there.... done that. I was upside down on several vehicles in a row up until some 25 years ago. Finally kept one long enough to get even on the new loan, paid extra on the premium, and paid the car off early. Traded and added some cash for the next car and have been paying CASH (+ trade in) for every vehicle for the past 15 years (3 vehicles in all). NO PAYMENTS from the get go. It's a very liberating feeling. Good luck.
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This X100. I was once in this position of not being able to afford a car. I had a job that allowed me to own a brand new Solstice GXP I was 18 and then I lost my job, I was stuck with a $700 car payment and no way of paying for it. I had to get 3 jobs just to keep working so that I could make the car payment and insurance payment and be able to afford groceries, gas and rent. I spent more time at my jobs than I did in that apartment for 7 months. I finally got a break and got a better job and have been on the incline since then.
You're going to have to bite the bullet and just pay for the car for at least 2-2.5 years until you are not under anymore