help with loan situation...

[Kaseys412]

HI, I really really want to go down to my local Toyota dealer and lease one of the new Corollas... but I have a big problem in my way, in the form of a 2005 Suzuki Verona. The car has low mileage and is in great condition but I owe $11,100 on my loan, and KBB is telling me the trade in value is $8,700 at most.. I don't get this but anywho.. what are my chances of the dealer giving me what I owe on this car? I'm kinda hoping they're just really desperate to get rid of some cars and will work with me..am I going to waste my time completely going down there or what.. I have good credit but if they won't give me at least what I owe I don't think I'll be able to swing the payments. HELP... thanks!! -Kasey

['97ventureowner]

Good luck. Unfortunately, you are in the same position as many others across the country that are "upside-down" with their auto loans, or those that owe more than the vehicle is worth. With the present shape the economy and auto industry is in, auto dealers are unwilling to make transactions such as what you are looking for. Your Suzuki may not be as popular, hence the low trade-in values.Some dealers tell their customers that they can "help them" by offering more for their trade, but they actually make up what they give you by charging more for something else or other fees. If you can sell the car and get what you owe, or close to it, and then pay off the loan on it and then go and buy the car you want, that might be a better option you could try.

[easymuny]

Hello Kasey,

What is the "private party value" of your car? The "trade in value" is usually much less than if you sold the car yourself. This is a way for the car dealers to make money on the car you buy and the car you trade.

You owe $2400 more than the "trade in value". If you have good credit the car dealer will probably just add that amount to the car you are wanting to buy.

Doing this will create more debt on your next car and you won't be able to trade or sell it for what you owe. Don't trade it! Your next car will be totally worn out before it is paid for.

Go to kbb.com and get the "private party value" for your car, then place your classified ad in free online classifieds and some of the paid car selling sites.

It would be good to run an ad in your local newspaper classified ads.

Check out my website and you will find just about anything you need to help you, including a form that will help you write a great classified ad.

Good luck and don't trade,