Advice on trading car in

[Dystamine]

Hello all,

I have a question.. well more like I would like some opinions on my current situation.

My fiance and I currently have a 2015 Hyundai Veloster Turbo with 10k miles on it. We used to lease a 2013 Honda Accord, but last year we decided we wanted a new and different car without the Accord's lease being done. So we tacked on negative equity (about $11,000.. yes it was a stupid decision but now we are stuck with it) So the total of the Veloster came out ot be 36k (value of the car is like 24k when we bought it brand new). Right now we owe 28k left on it. We pay $485 a month for a 6 year lease with $3,000 down.

Well, here is the thing. My fiance wants to try and trade in the Veloster to a dealership to get a lease for 3 years. Where they'd tack on the negative equity ontop of the payment for the lease and make it around the same we are currently paying a month ($485). Let's say the lease itself is $200 a month, well then they'd add the negative equity to that so we'd pay it off by 3 years (something like that). But at the end of the lease we'd have no car and would have to buy another one all over again. After 3 years we'd have paid about 17k, then if we were to get a new car around 16k it'd add up to about 36k (inlcuding our 3,000 down when we bought the Veloster) altogether for a (not as nice a car as the Veloster) in the end.

I say we keep the Veloster, and after 3 years of paying $485 a month there will be only 11k left and then we'd have it paid off in 2 years and own the car with no more payments.

He says he wants to get out of debt as soon as possible. But if we lease a car and then buy another one we'd still be making payments and will be in debt.

Any advice? I just want other peoples unbiased opinions. I appreciate it greatly.

[Fishindude77]

Pretty typical deal, being upside down on a car like this. Can't see how swapping into a lease makes your situation any better, plus at the end of a lease you have no vehicle. My gut tells me your situation would get worse.

One option would be to just chalk this up as a poor decision and get to work paying off the present vehicle as quickly as possible. Pay the darned thing off, then keep driving it till the wheels fall off. You will have to pay this car off, plus the amount you were in debt on previous car, and it will not be pleasant.

Other option would be to sell the present vehicle for as much as possible, then take out a note at the bank to pay off the balance that the car sale won't pay for, which sounds as if it could be substantial. This of course assumes you have credit and the ability to get that note. Then buy a cheap $3-5,000 car to get you by while you are cleaning up this debt.

Stay away from new cars for a while after that and buy stuff you can either pay for cash, or put a substantial down payment on and pay off in a year or two.

[Petunia 100]

Hello all,

I have a question.. well more like I would like some opinions on my current situation.

My fiance and I currently have a 2015 Hyundai Veloster Turbo with 10k miles on it. We used to lease a 2013 Honda Accord, but last year we decided we wanted a new and different car without the Accord's lease being done. So we tacked on negative equity (about $11,000.. yes it was a stupid decision but now we are stuck with it) So the total of the Veloster came out ot be 36k (value of the car is like 24k when we bought it brand new). Right now we owe 28k left on it. We pay $485 a month for a 6 year lease with $3,000 down.

Well, here is the thing. My fiance wants to try and trade in the Veloster to a dealership to get a lease for 3 years. Where they'd tack on the negative equity ontop of the payment for the lease and make it around the same we are currently paying a month ($485). Let's say the lease itself is $200 a month, well then they'd add the negative equity to that so we'd pay it off by 3 years (something like that). But at the end of the lease we'd have no car and would have to buy another one all over again. After 3 years we'd have paid about 17k, then if we were to get a new car around 16k it'd add up to about 36k (inlcuding our 3,000 down when we bought the Veloster) altogether for a (not as nice a car as the Veloster) in the end.

I say we keep the Veloster, and after 3 years of paying $485 a month there will be only 11k left and then we'd have it paid off in 2 years and own the car with no more payments.

He says he wants to get out of debt as soon as possible. But if we lease a car and then buy another one we'd still be making payments and will be in debt.

Any advice? I just want other peoples unbiased opinions. I appreciate it greatly.

Please clarify if you leased or purchased the Veloster.

[disneysteve]

6 year lease

Please clarify if you leased or purchased the Veloster.

I'm confused too. Six years sounds like a loan, not a lease. And with a lease, of course, you wouldn't own the car outright.

[Dystamine]

Please clarify if you leased or purchased the Veloster.

Sorry, it's to own. Not a lease.

[disneysteve]

currently have a 2015 Hyundai Veloster Turbo with 10k miles on it.

So the total of the Veloster came out ot be 36k (value of the car is like 24k when we bought it brand new). Right now we owe 28k left on it.

My fiance wants to try and trade in the Veloster to a dealership to get a lease for 3 years. Where they'd tack on the negative equity ontop of the payment for the lease and make it around the same we are currently paying a month ($485). Let's say the lease itself is $200 a month, well then they'd add the negative equity to that so we'd pay it off by 3 years (something like that).

He already made two incredibly bad financial decisions. He doesn't need to make a third. It will just bury him even more.

If he wants to get out of debt faster, he needs to pay extra on the loan he's got so that it's gone in 3 years rather than 6. Comb through the budget and cut back everything he can to free up money to throw at this mess and plan to keep that Hyundai for at least 10 years.

Does he have any other debt? Does he have any savings?

[snafu]

I suggest you and fiancé get on the same page and make some basic decisions about what is truly important to you both as a couple. Disagreement about how money is used/spent or saved leads to endless problems.

As I understand it, you need to pay $ 37,920. for a 2015 Hyundai whose 2nd year depreciation will further decrease value shortly. What do you anticipate it will be worth by current pay-off date 2021? Unbiased opinion... learn from expensive mistakes, don't make it worse. 1st what interest rate? Can you get a bank loan for a better rate? The smart thing is to gear down, eliminate unnecessary expenses, squeeze every dollar and pay off this car loan as fast as possible. At least you'll save yourself some interest.

From a smart money viewpoint it makes no sense to lease a car. You're overpaying for essentially renting a car long term. You are driving a vehicle you can't afford to impress people you don't know and who don't care about you. Please never again compound a financial error by adding old debt to a new debt on a depreciating item As you are learning, you owe more than the vehicle's KBB value. seriously underwater. Don't make more financial mistakes.


We want you both to succeed. I suggest a quick easy read like The Automatic Millionaire, free from the library or get it used from an on-line seller, to better understand money, debt and interest.

[tripods68]

Hello all,

I have a question.. well more like I would like some opinions on my current situation.

My fiance and I currently have a 2015 Hyundai Veloster Turbo with 10k miles on it. We used to lease a 2013 Honda Accord, but last year we decided we wanted a new and different car without the Accord's lease being done. So we tacked on negative equity (about $11,000.. yes it was a stupid decision but now we are stuck with it) So the total of the Veloster came out ot be 36k (value of the car is like 24k when we bought it brand new). Right now we owe 28k left on it. We pay $485 a month for a 6 year lease with $3,000 down.

Well, here is the thing. My fiance wants to try and trade in the Veloster to a dealership to get a lease for 3 years. Where they'd tack on the negative equity ontop of the payment for the lease and make it around the same we are currently paying a month ($485). Let's say the lease itself is $200 a month, well then they'd add the negative equity to that so we'd pay it off by 3 years (something like that). But at the end of the lease we'd have no car and would have to buy another one all over again. After 3 years we'd have paid about 17k, then if we were to get a new car around 16k it'd add up to about 36k (inlcuding our 3,000 down when we bought the Veloster) altogether for a (not as nice a car as the Veloster) in the end.

I say we keep the Veloster, and after 3 years of paying $485 a month there will be only 11k left and then we'd have it paid off in 2 years and own the car with no more payments.

He says he wants to get out of debt as soon as possible. But if we lease a car and then buy another one we'd still be making payments and will be in debt.

Any advice? I just want other peoples unbiased opinions. I appreciate it greatly.

Fishindude--I'm with you. That was exactly my thought.


You need to get rid of the car by selling it (private sale). Pay the difference as a loan to the bank and get a used $3K beat up until you have paid off the car. Don't buy another car until you can save up pay for cash (used is better) Save up next time. You will be in better financial footing.

[bjl584]

Selling the car outright would be tricky since you're so far upside down on it. You'd need to scrap together the cash or get a private loan to make up the difference so you can transfer the title.

You might be stuck with this car at least until you are above water on it. Start cutting expenses and throw everything you have at the loan. Either pay it off enough to get rid of it or pay it all the way off and keep it long term. Chalk this one up to a bad decision.