I currently own a 2003 accord which I'd like to (theoretically) trade in for a used S2000. Assuming I can get a used 2001 S2000 for around $19,000 (i've found a couple so it should be possible) I need to roll in what I'm upside down on the accord. I could probably get trade in for the accord around $20,000-$21,000, but I owe about $26,000.

So the scenario is I'm upside down about 6 grand, and want to finance a car only worth about 22 grand (but since im only paying 19 grand for it that should help to "hide" the amount i'm upside down?)


Anyways, just wondering for those out there who work in the world of financing, what the possibilities are, and even if anyone has someone I can contact about this. I have good credit and my payments would actually be LOWER than what my current car payment would be, even assuming say a 7-8% interest rate. (current payment is $611 a month)

Any advice, help, or any input would be appreciated.

 

There MIGHT be some banks that will do your loan for you, or the Auto place can ask their loan officers/banks if they will finance it for you. You probably wont get a optimal interest rate though. BUT I boughten a couple cars, and traded in an upsidedown trade in. Usually you can get something worked out. You could also sell your car and get Retail for it.

 

Bottom line... you're nuts trying to buy an older car for more money when you're already upside down on your loan.
All you're going to succeed in doing is digging yourself further into a hole that it will be harder to climb out of in a few years.

I'd stick with what you've got. Either that, or roll the amount you're upside down into a lease... you'll be paying relatively way too much for whatever car you lease, but at least at the end of the lease you'd be clean.

If you're that far upside down and you're making $600+ payments, it doesn't seem to me like you've got the cash to be playing with. At some point you've got to realize that you might be better off getting something affordable for a few years until you've got the money to put a sizeable down payment on a car.

 

Though yes I'd somewhat be digging myself into a hole possibly more buying a used S2k, in the long run it won't make a difference since I plan on keeping the S2000 and finishing paying for it throughout the rest of the loan period. I'm not going to lease because that's what got me in the hole so much in the first place.

I want a car that I am going to keep for a long time. Though the accord is nice, it's simply not what I want. I got "brow beaten" into it by my ex-fiancee. Lesson there... never give up a car for someone else.

 

 

Looking at your scenario, you may be able to work something out.

If you're buying a certified Honda, and you have excellent credit, you can get their special rate of 4.9 APR.

Assuming that you pay 19,000 for the car and you have a payoff of 26k and a value trade-in of 20,000(assuming you can get that), and assuming that AHFC will bury that much upside down into the financing, you're looking at a payment of around 500-510.

hope this helps, but I think you may need to come up with some money out of your pocket.

john

 

Listen basically you will need to finance about $24-6K to get yourself into that S.

 

Damn thats alot drive the accord!!

 

It all depends on how much the S2000 you want to buy books for. Banks decide how much they will let you borrow based on the book value. If you have good credit, you will probably be able to get away with 110-120% plus tax, license, etc. I think Honda Certified cars go up to 130%, but it's been a while since I've been out of the business. You'll probably have a little bit of a tough time finding a Certified one in your price range though.

I don't have a book in front of me, but say it books around $18K (just a WAG), that means you could borrow ~$21K + fees. That means you're short because you need $25K + fees.

I'm sure Pierceman will show up sooner or later and have better info.

 

I work for Acura so......AHF only gives you 110% of the retail amount. So actually even with exceptional credit you would get a loan for $20,900 and have to come up with the difference out of pocket. However, the retail amount is the asking price not the sale price, so if they are asking $22k for argument sake and your getting it for $19k, then you've already "hidden" $3k, and are looking at a loan of $24,200. This happens all the time, but the beast way out is the lease as mentioned above, but I can understand your position. Good luck.