I'm upside-down $2000 on my car. Should I buy a new one?

Ok... this is what%26#039;s going on...

Turns out, I checked the trade-in Blue Book value of my current car X and it%26#039;s $6000 give or take. I owe the bank $8000. I make monthly payments of $210, I have an interest rate of 7.98%. I have 59 months to go. My credit is Excellent (above 700).

Should I buy a new car Y (turning in car X, of course) that%26#039;s worth 12000?

I%26#039;m upside-down $2000 on my car. Should I buy a new one?credit check

NO!!!

there are problems, no matter how you finance your new car

First, Capital One Auto Finance CANNOT be used to cover a negative trade-in; you would have to pay off the $2000 BEFORE financing your new car.

If you finance from a dealer, they will take weeks or even months to pay it off, and it will just be rolled into your new loan anyway, accruing even MORE interest

I think you are better off just buying a Lexus ES250; you can get one for about $2000 and they are very reliable... and it%26#039;s a LEXUS!!!!!

I%26#039;m upside-down $2000 on my car. Should I buy a new one?

loan

even the new car will depreciate in value as soon as u take it off the lot.

if car X is in perfect working order, then keep it and keep paying for it.

it will be worthless to sell it and buy the new one|||if you trade it in for a new car you%26#039;re going to carry that 2,000 dollar %26quot;ditch%26quot; into your next car and just increase the amount you will have to pay on that loan. if the car is in good working order then keep it. a year down the road check the value again and how much you owe. if it keeps getting further away then you might end up just keeping it. if the value becomes the same as what you owe then you did yourself a favor by keeping it and not losing 2 g|||It%26#039;s never a good idea to get into a negative equity situation...better to keep making payments or pay off the negative equity before buying another car and start fresh. The problem is a new vehicle will depreciate faster in the first couple of years while you are only paying a steady rate instead of a variable rate that reflects the depreciation scale.|||Both cars are going to depreciate no matter what. In fact, if you buy a new car it will depreciate even faster than your current car. New cars lose value the minute they%26#039;re driven off the lot. So a used car in good condition can be more advantageous. Plus that%26#039;s quite a low payment. Why buy a new car if you don%26#039;t need it? You could put that additional money that you%26#039;d spend on a new car in savings or take a needed vacation. I would suggest that you renegotiate your car loan finance agreement if possible. Can you save money by paying it off sooner? Don%26#039;t be afraid to ask. Also check out this site for more info:

http://www.find-cheap-used-cars.com|||its always best to have a newer vehicle i would go for it. you will absorb the upside downsituation very shortly.|||59 months to go? Did you buy it last month? EVERYONE is upside down after their first month unless a large down payment was made.

If you buy another car you will be adding the new negative equity to your current situation making your hole even deeper. Why do that?