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captbk · May 11, 2007, 12:13 AM

Hello,
First before anyone says it I am a fool. A huge one. I purchased a 2006 jeep wrangler in dec. of 06. I now owe 25000 on it. However my life style has changed and I want a more conservative and gas saving vechile. What should I do? Someone told me to buy a used car that is worth less than the market value ( a 06 wrangler is approx 17000 by blue book standards.) of the car I have then role over the negative equity into the used car I purchase. Will this work? Help any advice for this fool will be helpful. Thank you in advance:( :(

AtlantaTaxExpert · May 11, 2007, 12:43 PM

I believe you are stuck. Most car dealers will not let you roll over negative equity into a USED car.

Now, if you wish to do it with a new car, there will be several car dealers who will work with you.

gazelleintense · May 12, 2007, 08:09 AM

Try selling it to a private owner, you get more that way... if its worth 17k but you owe 25, you would have to go to the credit union or such and get a loan for the difference... plus you need money for your next vehicle.

Very bad situation. Don't be too hard on yourself, we've all done it.

quaint11 · May 12, 2007, 08:59 AM

Hi! I purchased a used car, had one previous owner [Pontiac G6- 2006], at the first of the year, and the dealer offered to pay off any loans on my trade-in, but it was paid for. I would think the same might be true for you. Keep in mind, however, this was a used vehicle from the Pontiac dealership. I would not expect a private dealership or any ol' used car dealer to respond the same, because their establishment won't be the sort to accommodate such.

I would suggest asking around, going to dealerships under the mindset of "vehicle shopping". Ask to test drive a couple cars, but refrain from telling everything about your situation until you find what you are looking for.

Find a cheaper car with good miles per gallon, and then begin negotiating.

Also consider how much you have paid on the vehicle until now. You may need to consider paying it off a little more before using it as a trade-in.

Another option is to find someone to take over your contract. Many times this is possible, too.

You could take out a bank loan to pay off the vehicle and use it as an even trade for something you want. Then your new ride is paid for, and your bank can usually give you a better rate and lower payments.

There are options, and the more you pay on it, the more that become available to you.