Smartest way to trade in a car with Negative Equity

This isn’t the smartest financial move but if you’re going to trade in a car with negative equity this is how to do it!

[CaptnMikesAlot]

Sold cars for 2-3years I'm a service advisor now. But have been in dealers for about 10 years. This is the best way to go

[larryjeffries]

Somewhere, Dave Ramsey is in the back of an ambulance rushing to a level one cardiac unit.

[stephentaylor]

Have GAP insurance and wrap it around a tree

[ryguy]

Also what you could do is buy a Honda used for 10k and drive it for 10 years like I have lol. Also do next to none maintenance because it’s a honda

[charlesphilhower]

Leasing is the car salesman’s dream because it keeps the customer continuously be paying. It is actually the most expensive way to have a vehicle. Buying a good used vehicle is a much smarter decision because it has already gone through the greatest depression. By putting yourself in a position of not being totally dependent on a vehicle you can have greater flexibility in getting a lower cost vehicle.

[Figuereditout]

This is the most honest salesman/ friend to the public out there. No going wrong buying here ever!!!

[Verhoefswords]

Or… you could do some research and purchase a vehicle from a reliable car brand, stay on top of regular maintenance BEYOND changing the oil, and then hang on to the car until then end of the loan and you have POSSITIVE equity. Of course a car salesman doesn't want people to look at it this way because it means you'll sell less cars.

[zachtaylor]

Most people trade their car in every 3-4 years probably, so leasing is a great option for the majority of people.

[freedomanchor]

There are a few ways of looking at this. If you have negative eauity, keep it, pay it off and stop from paying payments. If you're they tyoe of person that feels they need a new car every two or three years then you should leasing anyway.

[pqsk]

I did this some years ago, but the difference is that I fought with them for hours until they agreed to give me a reasonable price and 0 down and first month 0 also. So I got rid of my car that I still owed some $10k+ still and got something like $350/month for 3 or 5 years

[jeremyreese]

For me find out how much your payoff is than get your car appraised through carmax or autonation because those two offer the highest appraisals get a copy and take it into the dealership of your choice and tell them to match the offers you have and they have a deal, if not tell them no worries you’ll just hold onto your car. Next find a car that is offering huge rebates that will eat up most of your negative equity if not all of it, have some money saved back so if need be you can put some money down and break even and roll over very little to no equity at all, if the equity is very low most likely the dealership will just take it as a lost and you start over with no negative equity. To prevent yourself from going into negative equity buy brand new and make sure it’s the car you like and be mindful of the mileage you drive every year if you plan on trading it in within the next three years. Then finally dont do a 84 month term, i personally try to keep it at 66 months or less.

[reverseflash]

Can’t lease if you’re doing high mileage. I do 90 miles a day

[GeoTactics]

It's only negative equity to a dealer. I have a car that sells regularly in my area (private and dealers) for $20k-22k. BUT dealers want to pay $13k-15k. I get it... they want to turn around and sell it for the higher amount and pocket a nice beefy profit. BUT... it's only negative equity if you sell it to a dealer. ;)

Also, a lease is fine if you drive very little. If you drive a lot... a lease will bury you.

[czaz]

Ok I wish that would work but sadly if you don’t have an AWESOME credit that formula doesn’t work I tried..

[jdmorge]

Honestly got myself into a bad car loan deal also a bad refinance deal but im just gonna pay it off take the loss and pass this car down to my kid so he wont deal with this bullshit

[kidsmooth]

You will own nothing and be happy, is basically what he's saying.

[czaz]

I understand your points, but it's also important to note that having a strong credit rating is essential for most manufacturers. They typically require good credit in order to approve any lease agreements. I just wanted to highlight that aspect for a more complete picture.

[joshchristensen]

I’m in that same boat with my Tesla - over saturation of the market killed me and now my car is worth half of what I bought it for 😑

[wjtinatl]

Better to find a car that hold its value well but the manufacturer is offering 0% or very low manufacturers subsidized financing. As of Feb. 2025 Subaru would fit that description. Roll as much of the negative equity into the new car deal and finance the entire balance at the very low rate. Since there’s no or very little interest expense each payment takes big chunks out of the payoff balance but because the car holds it’s value reasonably well if you’re upside down in the deal it’s usually only the first 12-24 months of the loan.

[Jlopeztx]

I had to buy a car during the Covid-19 pandemic and Prices where trough the roof. A year later and that car value dropped $10, 000. I plan on doing this lease thing and in 3 yrs buy a used cash car.