How exactly is taking a car you're $3-4.5k underwater on and turning it into an older car you're going to be $6-7k underwater on a win?
Debt isn't fun but if you have an asset to show for it (even one that is depreciating) then you're balancing out. What you're proposing to do is to sign up to take a subprime loan at a crazy debt to equity on a car nearing 10 years old with >110k miles. That's beyond foolish and would after adjusting your interest rate for the risk almost certainly cost you more than it ever saved.
You're right to be upset about having a car payment until your car is 14 years old but your response is illogical. Accelerate your payments and save on interest charges that way.
Giving up a car known for reliability to drive something older and with (ostensibly) more miles, to make a minor reducing in your car loan seems quite unwise.
How is your loan balance so high relative to the current value of the vehicle if you purchased it recently?
>I owe around 20.5k on a 2017 Toyota Camry
...
> i have found online that some sell for around 16-17k
Some basic accounting: Your car (the asset) and the loan (the associated liability) has a net worth of around negative $3K.
No matter how you play with the numbers or try to buy/sell/trade into another car, you won't be able to improve that number any faster than just paying down the loan.
Buying another car, with another loan almost certainly make your situation worse because of transaction costs. Car dealers need to get their cut, and there is sales taxes, fees, etc. (The only thing that could possibly help would be a refinance to a lower rate, but that's very unlikely with current rates.)
Don't overthink it. Just keep making the payments and take car of your car. Eventually it will be worth more than the loan.
A lot of Hyundai from that era have engine issues.
You already took the hit from depreciation on your purchase, makes no sense to trade it in and roll over negative equity, pay more taxes, fees, etc. You will only be digging yourself deeper.
Can you pay extra on your current loan?
> IF the dealership would let me roll over the rest of my loan amount onto the car in the first place.
It's not up to the dealer. They will sell you a car under any circumstances. It's up to the bank and the bank is limited by "loan to value" calculations. You will find that the difference between what you owe on the Camry and what it's worth as a trade-in could be a few thousand dollars. That means that even if you trade the car today you still spent thousands driving it for a few months.
It's not a good idea and this thought in your head that you got ripped off is not real anyway. You've conflated the advertised prices of cars with your total which includes all taxes and fees and interest. You're driving yourself crazy over nothing.
you thought financing a vehicle for 156 months (2017+ 7 years) was a good deal???
Bro, you have bigger problems than just not liking the loan. Your only way out is to work enough to earn the difference then sell it private and never do this again
Suck it up and keep and then payoff the Camry. Do not get tempted to buy another vehicle when it’s paid off. Make extra payments to knock down the principal.
This is an awful idea. Keep the Camry. It’s going to be more reliable and last longer than the Hyundai.
How exactly is taking a car you're $3-4.5k underwater on and turning it into an older car you're going to be $6-7k underwater on a win? Debt isn't fun but if you have an asset to show for it (even one that is depreciating) then you're balancing out. What you're proposing to do is to sign up to take a subprime loan at a crazy debt to equity on a car nearing 10 years old with >110k miles. That's beyond foolish and would after adjusting your interest rate for the risk almost certainly cost you more than it ever saved. You're right to be upset about having a car payment until your car is 14 years old but your response is illogical. Accelerate your payments and save on interest charges that way.
Giving up a car known for reliability to drive something older and with (ostensibly) more miles, to make a minor reducing in your car loan seems quite unwise. How is your loan balance so high relative to the current value of the vehicle if you purchased it recently?
The price we got the car for was 16.9k which was a good price for the car but we added gap insurance which added to the total and taxes etc.
I'd be curious about the breakdown of that when its almost 25% of the purchase price. It seems like you got taken to the cleaners
apparently so
>I owe around 20.5k on a 2017 Toyota Camry ... > i have found online that some sell for around 16-17k Some basic accounting: Your car (the asset) and the loan (the associated liability) has a net worth of around negative $3K. No matter how you play with the numbers or try to buy/sell/trade into another car, you won't be able to improve that number any faster than just paying down the loan. Buying another car, with another loan almost certainly make your situation worse because of transaction costs. Car dealers need to get their cut, and there is sales taxes, fees, etc. (The only thing that could possibly help would be a refinance to a lower rate, but that's very unlikely with current rates.) Don't overthink it. Just keep making the payments and take car of your car. Eventually it will be worth more than the loan.
thank you
A lot of Hyundai from that era have engine issues. You already took the hit from depreciation on your purchase, makes no sense to trade it in and roll over negative equity, pay more taxes, fees, etc. You will only be digging yourself deeper. Can you pay extra on your current loan?
trying to pay extra when i can
> IF the dealership would let me roll over the rest of my loan amount onto the car in the first place. It's not up to the dealer. They will sell you a car under any circumstances. It's up to the bank and the bank is limited by "loan to value" calculations. You will find that the difference between what you owe on the Camry and what it's worth as a trade-in could be a few thousand dollars. That means that even if you trade the car today you still spent thousands driving it for a few months. It's not a good idea and this thought in your head that you got ripped off is not real anyway. You've conflated the advertised prices of cars with your total which includes all taxes and fees and interest. You're driving yourself crazy over nothing.
you thought financing a vehicle for 156 months (2017+ 7 years) was a good deal??? Bro, you have bigger problems than just not liking the loan. Your only way out is to work enough to earn the difference then sell it private and never do this again
not my proudest moment i must say
Suck it up and keep and then payoff the Camry. Do not get tempted to buy another vehicle when it’s paid off. Make extra payments to knock down the principal.