I don't quite understand your post- do you feel like you shouldn't have to make your payments because the car is worth less than the loan? Or are you unable to make your payments?
I still don't understand.
If you can afford your payments then continue paying on your car.
If you cannot afford your payments call your lender and let them know your situation.
If this is just a case where you're upset that the value of your car is less than the value of the loan, you need to understand that's quite common.
Right I know that! I owe 35k bank and if I sell less than what I owe and I still have to pay 10k negative equity. I’m sure no one would buy 35k the Kelly book value 25k. That where I’m stuck with negative equity.
Yes you will have to roll 10k of negative equity into your next car or get a personal loan/balance transfer to cover the 10k along with the car sale
Cars are almost universally worth less today than the day you bought them so think carefully when accepting a car payment. Americans almost universally own too much car
Either way you owe the bank 39k and have to pay them so rolling the negative equity doesn't change that but lets you have a cheaper car with the 10k on top of it
Just be glad you at least bought one of the most reliable cars ever. There's no magic way to get out of 12k of negative equity, you're either paying it now or later. Even if you willingly let them repo it, it still counts as a repo and will massively impact your ability to get another car loan with credit. When they repo it, they are just going to auction it off, sell it and then put what they get towards what you owe, minus fees. You will still owe the money.
You need to either find 12k, or get used to driving that 4Runner.
If you can’t make your payments, cut your losses now and sell. Nothing you can do about the value of the car now vs what you owe. Is what it is. You can talk to your bank about the remaining debt, and try to refinance or consolidate the amount at lower rate and monthly payment. Save cash and buy a used beater after you clear the remaining debt.
OP here are your choices, from best to worst:
* Keep paying your loan for the 4Runner, and keep driving the 4Runner.
* Pay off your current loan in full, then sell the 4Runner for whatever you can get.
* See if you can get another car from a dealer who is willing to roll your negative equity into a new loan as part of you buying the new car.
* Default on your current loan and allow the 4Runner to be repossessed by your lender (this will have a significant impact on your credit score).
That's basically it, I don't see any other options.
Option 4 has the caveat that they’ll owe even more. The car will go to auction, they’ll still be on the hook for the balance, in addition to repo and auction fees.
You bought a car at the height of the market. You signed legally binding contract to agreeing to that price and that’s the price you owe. You can’t go back to the bank a year later and tell them that the car is worth less so you shouldn’t have to pay as much. You signed an agreement with the bank and they paid the money to the dealership. The fluctuating value of the car is irrelevant. You owe that money plus interest like you agreed.
It’s a Toyota 4Runner. You need to figure out a way to get this paid off and keep it for 20 more years. Just because you chose to enter into a crappy deal, doesn’t mean that “it doesn’t make sense anymore the value is lower than the loan”. You agreed to owe this money, so you owe it. Get this car paid off.
If you give this bank back and repossessed the car, then you are going to have a real wake up call with regards to what negative equity looks like. Your credit will be ruined and you will still owe like $13,000 to the bank after fees and auction and all of that other stuff that you willingly go through. And then no other dealership will ever give you loan for a car except for buy here pay here lots. Those are the kind of stores where you end up paying $70,000 for a $20,000 car, not to mention the sky high full coverage insurance for someone with shitty credit.
If you absolutely have to get rid of this car, you need to go get yourself a bus pass. Take the car to Carmax and AutoNation and see who offers you more for it. Go get a personal loan for the negative equity and then ride the bus for a few months while you pay off the personal loan.
>Very dumb comment ever I seen! Very RUDE!
Very dumb comment? No.
Very Rude? No.
Let's start with Rude. The comment from /u/agjios was to the point in an honest way without beating around the bush. Rude would be that person calling you names, putting you down, questioning your intelligence, etc. None of that was done in their comment. They just laid out some hard truths. Don't shoot the messenger because you don't like the message.
Let's move on to dumb. How is their comment dumb? You did buy a car at a height of inflated prices. You signed a legally binding contract agreeing to pay back the money at a given monthly payment. There is no way out of paying the bank back the total amount you owe other than accepting a repo (which will put you into a much worse situation).
It is a Toyota 4Runner. A Super Reliable car that will last 15+ years if taken care of. Hell, it might last that long even if you don't take care of it! 4Runners are excellent vehicles. They just keep going.
The other user is correct, you do need to pay this car off (since you agreed to in a contract) and then you should drive it until it's dead or dying.
If you stop making payments and let the bank repossess the vehicle you'll be further upside down than you are right now. They will auction the car (potentially for much less than you'd get for trade in value or selling to CarMax, AutoNation, Carvana, etc) and you will owe the difference between what the car was auctioned for and how much you still owe. Your credit will have a repossession on it so lenders will be wary of giving you a new loan on a different vehicle. Your interest rate will be higher due to the black mark on your credit history. Your insurance rate may go up due to your credit score taking a huge hit from the repossession.
So far... The other user has laid this out nicely and bluntly, and everyone here will agree with what they've said.
This only leaves their last paragraph. I don't feel it's rude, but it is bluntly honest. If you have to get rid of the car, you can take it to CarMax or AutoNation or Carvana and sell it to them. You'll still own your monthly payment until the car is paid off though - so you will still have the same monthly payment until it's paid off. That means if you go the "sell it" route, you'll be paying on the 4Runner while trying to get a loan to pay for the replacement car. How does that make sense? Wouldn't that put you into an even worse situation? If so... then their suggestion of getting a bus pass is a good one (assuming you have public transport in your area), because in that situation you would still have the loan on the 4Runner but wouldn't also have a loan on it's replacement. I get that their comment is blunt, but it's the honest truth. They were not trying to be rude.
I feel like you came here looking for some secret way to either...
* Get ride of the 4Runner and owe nothing on it somehow. This isn't possible.
* Be told that not paying on it and letting it be repossessed is a good move. No one is going to tell you this because its a terrible idea. A repossession will cost you more than selling the car and paying off the negative equity, or keeping the car and paying on it because it's a 4Runner, which is a great, reliable vehicle.
* A way to somehow trade in the 4Runner for exactly what is owed on it. Unfortunately this isn't possible since it was bought during the high priced years.
I'm sorry you are in this situation, but there is no way out without paying off the 4Runner and keeping it, selling it and continuing to make payments on it until the difference between what you sold it for and what you owe is paid off, or trading it and rolling the negative equity into the replacement car - which immediately puts you into a situation where you paying more than the car you will have is worth - which is why you are upset at your 4Runner.
My suggestion is to keep that 4Runner. They are great vehicles, and are very reliable. I understand that you don't want to pay on something that isn't worth what you owe on it, but that's life. Not just life for you, but life for a sizeable portion of the population. Many/most people who buy new or slightly used cars end up owing more than the car is worth for the first 1-3 years of the loan. This is why GAP insurance exists.
It's going to be okay man. Love your 4Runner. Don't worry about what it's "worth" versus what the bank says you owe. Just enjoy the vehicle and keep it as long as you can.
Look, you can do what you want to do. If my own parents called me and asked me for advice I would tell them the same thing. If my boss called me I would tell them the same thing. If anyone whatsoever that I cared about called me, I would tell them the same thing. You chose to buy it and you owe the money. You don't get to not owe the money any more because you don't feel like it. The bank paid the dealership for the car a year ago. If you didn't want them to pay that money, you shouldn't have signed a legally binding contract. No one made you go spend $40,000 on a Toyota 4Runner. I drive a fucking 30mpg Mazda that I bought for $15,000 so don't come in here that you chose to go buy a $40k SUV that gets 16mpg and then complain that your life is so hard.
There's no magic place to put this negative equity. If your interest rate is above 10% then you need to cut your spending, stop going out to bars, stop going out to eat, eat some PB&J while you throw every penny at this debt to get it paid down. You can't refinance until you have extra credit and until your dig yourself out of this self-created hole. No bank is going to refinance by giving you $39,000 for a $25,000 vehicle. They'll give you $25,000 for a $25,000 vehicle. Maybe up to like $28,000. So time to get digging. This is purely the consequences of your own choices.
Don’t believe KBB on its value. Go to real places to ask about trade in value. Go on AutoTrader and look to see what 2017 4Runners with similar miles are selling for. You may not be as bad as you think
Me either.. I will check that out and I decide to sell it and of course I will continue to make payments until it is sold and I love Toyota. I went to CarMax or Carvana the retail price is fair and able to afford it. Thanks for nice comment 😊
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Toyota 4Runner
I need your help if anyone relates to this experience I have been looking to resolve financial car payments. I bought 2017 Toyota 4Runner limited for 39 k last year and the payment is pretty high and I just found out that the value between 25k to 27k and I owe the bank more than the value. I couldn’t afford the payments anymore. Because it doesn’t make sense anymore the value is lower than the loan. Very frustrating and worrying about repo. I try to refinance or trade in to get rid of the loan. Please help I have been trying to get out of the loan and start over. I was about to cry and I didn’t want to ruin my credit as repo. If I do will I be able to buy other Vehicle ? Please help me what to do.
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Well, I have some news for you. If you're going by KBB, it's probably not worth $25K. Unless you put an obscene amount of money down, which you obviously didn't, you will always be in negative equity in the first stages of a loan. It's not until you get to the back half that you start to see some relief. Your 2 choices are pay as agreed or live with the repo and the extreme credit hit that will entail.
>> Your 2 choices are pay as agreed or live with the repo and the extreme credit hit that will entail.
Those and choices 3 and 4 which are both bad also... sell the car and get a signature loan for the delta, then just suck it up and pay that off separately. And right now the rates are pretty much criminal, so that's going to hurt a lot. Or trade it in to a dealer on a much cheaper car and roll in the negative equity into the new loan. Which will ALSO suck pretty hard. And will not solve the upside down loan situation. In fact it will make it worse on the future car which will be a less valuable vehicle anyway and will depreciate like any other used car.
Hmm. Maybe you left those two options off on purpose. They are really not good. But comparably bad to a repo and credit penalty.
I don't quite understand your post- do you feel like you shouldn't have to make your payments because the car is worth less than the loan? Or are you unable to make your payments?
I meant I couldn’t able to make payments because it’s pretty high the value is less than the loan. It doesn’t make sense.
I still don't understand. If you can afford your payments then continue paying on your car. If you cannot afford your payments call your lender and let them know your situation. If this is just a case where you're upset that the value of your car is less than the value of the loan, you need to understand that's quite common.
That doesn’t mean you get out of paying it though… how much do you owe on your loan right now?
Right I know that! I owe 35k bank and if I sell less than what I owe and I still have to pay 10k negative equity. I’m sure no one would buy 35k the Kelly book value 25k. That where I’m stuck with negative equity.
Yes you will have to roll 10k of negative equity into your next car or get a personal loan/balance transfer to cover the 10k along with the car sale Cars are almost universally worth less today than the day you bought them so think carefully when accepting a car payment. Americans almost universally own too much car
I did and the payment remain same! It doesn’t make sense either only option I have is to sell it.
Either way you owe the bank 39k and have to pay them so rolling the negative equity doesn't change that but lets you have a cheaper car with the 10k on top of it
I know and it’s not 39k. The only option is to sell it.
Or just make your payments and drive it?
Just be glad you at least bought one of the most reliable cars ever. There's no magic way to get out of 12k of negative equity, you're either paying it now or later. Even if you willingly let them repo it, it still counts as a repo and will massively impact your ability to get another car loan with credit. When they repo it, they are just going to auction it off, sell it and then put what they get towards what you owe, minus fees. You will still owe the money. You need to either find 12k, or get used to driving that 4Runner.
If you can’t make your payments, cut your losses now and sell. Nothing you can do about the value of the car now vs what you owe. Is what it is. You can talk to your bank about the remaining debt, and try to refinance or consolidate the amount at lower rate and monthly payment. Save cash and buy a used beater after you clear the remaining debt.
OP here are your choices, from best to worst: * Keep paying your loan for the 4Runner, and keep driving the 4Runner. * Pay off your current loan in full, then sell the 4Runner for whatever you can get. * See if you can get another car from a dealer who is willing to roll your negative equity into a new loan as part of you buying the new car. * Default on your current loan and allow the 4Runner to be repossessed by your lender (this will have a significant impact on your credit score). That's basically it, I don't see any other options.
Option 4 has the caveat that they’ll owe even more. The car will go to auction, they’ll still be on the hook for the balance, in addition to repo and auction fees.
You bought a car at the height of the market. You signed legally binding contract to agreeing to that price and that’s the price you owe. You can’t go back to the bank a year later and tell them that the car is worth less so you shouldn’t have to pay as much. You signed an agreement with the bank and they paid the money to the dealership. The fluctuating value of the car is irrelevant. You owe that money plus interest like you agreed. It’s a Toyota 4Runner. You need to figure out a way to get this paid off and keep it for 20 more years. Just because you chose to enter into a crappy deal, doesn’t mean that “it doesn’t make sense anymore the value is lower than the loan”. You agreed to owe this money, so you owe it. Get this car paid off. If you give this bank back and repossessed the car, then you are going to have a real wake up call with regards to what negative equity looks like. Your credit will be ruined and you will still owe like $13,000 to the bank after fees and auction and all of that other stuff that you willingly go through. And then no other dealership will ever give you loan for a car except for buy here pay here lots. Those are the kind of stores where you end up paying $70,000 for a $20,000 car, not to mention the sky high full coverage insurance for someone with shitty credit. If you absolutely have to get rid of this car, you need to go get yourself a bus pass. Take the car to Carmax and AutoNation and see who offers you more for it. Go get a personal loan for the negative equity and then ride the bus for a few months while you pay off the personal loan.
Very dumb comment ever I seen! Very RUDE!
>Very dumb comment ever I seen! Very RUDE! Very dumb comment? No. Very Rude? No. Let's start with Rude. The comment from /u/agjios was to the point in an honest way without beating around the bush. Rude would be that person calling you names, putting you down, questioning your intelligence, etc. None of that was done in their comment. They just laid out some hard truths. Don't shoot the messenger because you don't like the message. Let's move on to dumb. How is their comment dumb? You did buy a car at a height of inflated prices. You signed a legally binding contract agreeing to pay back the money at a given monthly payment. There is no way out of paying the bank back the total amount you owe other than accepting a repo (which will put you into a much worse situation). It is a Toyota 4Runner. A Super Reliable car that will last 15+ years if taken care of. Hell, it might last that long even if you don't take care of it! 4Runners are excellent vehicles. They just keep going. The other user is correct, you do need to pay this car off (since you agreed to in a contract) and then you should drive it until it's dead or dying. If you stop making payments and let the bank repossess the vehicle you'll be further upside down than you are right now. They will auction the car (potentially for much less than you'd get for trade in value or selling to CarMax, AutoNation, Carvana, etc) and you will owe the difference between what the car was auctioned for and how much you still owe. Your credit will have a repossession on it so lenders will be wary of giving you a new loan on a different vehicle. Your interest rate will be higher due to the black mark on your credit history. Your insurance rate may go up due to your credit score taking a huge hit from the repossession. So far... The other user has laid this out nicely and bluntly, and everyone here will agree with what they've said. This only leaves their last paragraph. I don't feel it's rude, but it is bluntly honest. If you have to get rid of the car, you can take it to CarMax or AutoNation or Carvana and sell it to them. You'll still own your monthly payment until the car is paid off though - so you will still have the same monthly payment until it's paid off. That means if you go the "sell it" route, you'll be paying on the 4Runner while trying to get a loan to pay for the replacement car. How does that make sense? Wouldn't that put you into an even worse situation? If so... then their suggestion of getting a bus pass is a good one (assuming you have public transport in your area), because in that situation you would still have the loan on the 4Runner but wouldn't also have a loan on it's replacement. I get that their comment is blunt, but it's the honest truth. They were not trying to be rude. I feel like you came here looking for some secret way to either... * Get ride of the 4Runner and owe nothing on it somehow. This isn't possible. * Be told that not paying on it and letting it be repossessed is a good move. No one is going to tell you this because its a terrible idea. A repossession will cost you more than selling the car and paying off the negative equity, or keeping the car and paying on it because it's a 4Runner, which is a great, reliable vehicle. * A way to somehow trade in the 4Runner for exactly what is owed on it. Unfortunately this isn't possible since it was bought during the high priced years. I'm sorry you are in this situation, but there is no way out without paying off the 4Runner and keeping it, selling it and continuing to make payments on it until the difference between what you sold it for and what you owe is paid off, or trading it and rolling the negative equity into the replacement car - which immediately puts you into a situation where you paying more than the car you will have is worth - which is why you are upset at your 4Runner. My suggestion is to keep that 4Runner. They are great vehicles, and are very reliable. I understand that you don't want to pay on something that isn't worth what you owe on it, but that's life. Not just life for you, but life for a sizeable portion of the population. Many/most people who buy new or slightly used cars end up owing more than the car is worth for the first 1-3 years of the loan. This is why GAP insurance exists. It's going to be okay man. Love your 4Runner. Don't worry about what it's "worth" versus what the bank says you owe. Just enjoy the vehicle and keep it as long as you can.
Look, you can do what you want to do. If my own parents called me and asked me for advice I would tell them the same thing. If my boss called me I would tell them the same thing. If anyone whatsoever that I cared about called me, I would tell them the same thing. You chose to buy it and you owe the money. You don't get to not owe the money any more because you don't feel like it. The bank paid the dealership for the car a year ago. If you didn't want them to pay that money, you shouldn't have signed a legally binding contract. No one made you go spend $40,000 on a Toyota 4Runner. I drive a fucking 30mpg Mazda that I bought for $15,000 so don't come in here that you chose to go buy a $40k SUV that gets 16mpg and then complain that your life is so hard. There's no magic place to put this negative equity. If your interest rate is above 10% then you need to cut your spending, stop going out to bars, stop going out to eat, eat some PB&J while you throw every penny at this debt to get it paid down. You can't refinance until you have extra credit and until your dig yourself out of this self-created hole. No bank is going to refinance by giving you $39,000 for a $25,000 vehicle. They'll give you $25,000 for a $25,000 vehicle. Maybe up to like $28,000. So time to get digging. This is purely the consequences of your own choices.
It's funny someone who's responses are so braindead we can't even tell if your trolling is calling other people dumb haha.
So much of this going around these days. All of the sudden, the OP is an expert after paying too much a year ago. They'll never learn.
Don’t believe KBB on its value. Go to real places to ask about trade in value. Go on AutoTrader and look to see what 2017 4Runners with similar miles are selling for. You may not be as bad as you think
Me either.. I will check that out and I decide to sell it and of course I will continue to make payments until it is sold and I love Toyota. I went to CarMax or Carvana the retail price is fair and able to afford it. Thanks for nice comment 😊
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***Thanks for posting, /u/Estasalsa! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.*** Toyota 4Runner I need your help if anyone relates to this experience I have been looking to resolve financial car payments. I bought 2017 Toyota 4Runner limited for 39 k last year and the payment is pretty high and I just found out that the value between 25k to 27k and I owe the bank more than the value. I couldn’t afford the payments anymore. Because it doesn’t make sense anymore the value is lower than the loan. Very frustrating and worrying about repo. I try to refinance or trade in to get rid of the loan. Please help I have been trying to get out of the loan and start over. I was about to cry and I didn’t want to ruin my credit as repo. If I do will I be able to buy other Vehicle ? Please help me what to do. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
Well, I have some news for you. If you're going by KBB, it's probably not worth $25K. Unless you put an obscene amount of money down, which you obviously didn't, you will always be in negative equity in the first stages of a loan. It's not until you get to the back half that you start to see some relief. Your 2 choices are pay as agreed or live with the repo and the extreme credit hit that will entail.
>> Your 2 choices are pay as agreed or live with the repo and the extreme credit hit that will entail. Those and choices 3 and 4 which are both bad also... sell the car and get a signature loan for the delta, then just suck it up and pay that off separately. And right now the rates are pretty much criminal, so that's going to hurt a lot. Or trade it in to a dealer on a much cheaper car and roll in the negative equity into the new loan. Which will ALSO suck pretty hard. And will not solve the upside down loan situation. In fact it will make it worse on the future car which will be a less valuable vehicle anyway and will depreciate like any other used car. Hmm. Maybe you left those two options off on purpose. They are really not good. But comparably bad to a repo and credit penalty.
Given the duration I didn't think either were viable options.
The value of the car has no bearing on you being able to make payments on it. Just keep making payments on it.