Trading in a car that i still owe on? How does it work?
So i bought a used car which i regret so deeply because it has been nothing but issues and unfortunately i bought it as is. The carfax checked out and my mechanic said it was good but boy was he wrong. Anyways i found a 2015 Subaru Wrx for $17k in a honda dealership with 56k miles which is a good deal. I financed my car for 13k and honda wants to buy it but my car is valued at 10k according to kellys blue book. So im curious would that negative $7000.00 be transferred to the 17k on the new car or how would it work? My job is great i make about 48k a year and i live with my parents still so i dont really have crazy bills other than rent, phone, and internet plus insurance which isnt much. Im ok if the car adds up to like 35k because ive had a 40k car that i totaled but thankfully insurance covered it so yeah point is money isnt the issue and im ok with a high interest because i dont want my parents help because then they throw it in my face. Avoid any "dont do it" "youll be negative" idc about that i just want to know how it would work if i trade in my current car that i still owe for another car valued at 17k when i still owe 13k on mine.
- lj1Lv 74 weeks agoFavorite Answer
The dealership will offer you half of what the car is worth. They aren't going to take a load when they resell it. They will roll your negative equity into the loan for the WRX, which will make you be even more upside down than you already are. I know that people do it all the time, but it's still a bad idea.
I'm sorry if that isn't what you want to hear, but it's the truth.
- Trump 2020Lv 74 weeks ago
This is a bad idea for SO many reasons, some of which have already been pointed out. For ME, a WRX is a car to avoid, as every heavy foot kid in town dreams of owning one, and they drive them into the ground when they get one. It's probably been beat to death. Next, as a rule, people usually stick with a brand if they're happy with it, so the fact someone traded this car for a Honda makes me wonder
- Anonymous4 weeks ago
Talk to the Honda dealership. You might end up paying $24k to $26k for the $17K Subaru. And you really do not want to buy a used WRX. Most of them are owned by young men who floor them every time like they just stole it.