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Is it a good idea to trade in my vehicle which has negative equity in for a used SUV? I would have to put $3,500 down and then my payments?

would be about $50 lower a month than what I am paying now. The vehicle I'm looking at is a GMC Yukon 130,000 miles and its a 2013. Is it a good idea or no and why? Thanks

11 Answers

  • Anonymous
    1 month ago

    Going deeper into debt, on a crappy vehicle, for a few extra pizzas every month. NO.

    I've made that mistake and regretted it.

  • 1 month ago

    You would have to pay cash for the difference between your current car's trade value and what you still owe (your negative equity), plus a down payment on the new car. If you don't have that much cash and must roll some of it into the new loan (assuming it's possible), your new payments WILL NOT be $50 lower than your current payments. In fact, your payments would very likely be higher than your current payments.

  • 1 month ago

    GAS GUZZLING MONSTEER and OLD OLD OLD Technology as WELL! If you have LOTs of money to WASTE on FUEL then this is YOUR BABY!HOW MUCH is TOTAL COST for a car nearly TWENTY YEARS OLD now! 18 years, anyways! I would RUN AWAY from that thing! GM HAD issues WITH brake hoses AND brake lines AFTER ABOUT 7 years OR SO! if AND only if IT HAS AN atlas engine WHICH IS A straight six OR turbo STRAIGHT SIX would i consider it! The v8 ENGINES ARE just OVER PRICED AND over FUELISH! knot worth it! FORD does a BETTER JOB< trust me! I have worked on ALL of them at one time or another! 

  • Jay P
    Lv 7
    1 month ago

    Trading in any vehicle while still making payments on it is NOT a good idea ( that is assuming the lender even allows it, which they may not ).

    You will be on the losing end of that deal financially speaking...  It is far better to pay off your existing vehicle loan first and only after it is paid off, start thinking about selling or trading in your current vehicle.

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  • Anonymous
    1 month ago

    Pay off your current vehicle.  The Yukon DRINKS gas.

  • Anton
    Lv 6
    2 months ago

    Your vehicle has negative equity.  You are in a hole.

    When in a hole, STOP DIGGING.

    Try to sell your vehicle for more than what you owe.

    Stop wasting money for driving more vehicle than you need.

  • Jesus
    Lv 5
    2 months ago

    No friend it's not a good idea to trade it in you'll end up still owing the money on the next vehicle.

    Get out from under that car voluntarily surrender it tell them I can't pay for it. And then after they come pick it up take your 3,500 down and go buy a brand new Nissan versa. Your payments will only be $200 a month

  • Anonymous
    2 months ago

    The answer is a firm NO. You'll still be in a negative equity situation with a less reliable, high mileage vehicle that uses too much gas, and you'll be $3,500 poorer. There are a lot of ways you could save an extra $50  a month or more and get that loan paid down so you're not underwater. Thanks for posting. It reminds me that I should be grateful that I'm not an idiot. 

  • 2 months ago

    You couldn't pay me to drive an eight year old behemoth like that, ever.

    Why the heck do you want such an absolutely sh*tty SUV ?

  • 2 months ago

    Depends on your present vehicle and why you want to replace it.  If it is just to lower your payment by $50 a month, it will take you 70 more months just to get back the down payment.  You will end up losing money.  

    Is there some reason you need the SUV ?  If it is just to be 'cooler' , then you should know that it will not make you any cooler.  You are what you are.

    Is it because your present vehicle is that bad ?  Hard to imagine that you are trading up to a nine year old Yukon with 130,000 miles when you still  owe so much on the last vehicle.

         To sum up:  Unless there are very extenuating circumstances, this could be one of the worst ideas and you are likely dooming yourself to a life of constant debt and poverty.

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