Can I trade my brand new car for a used car? ?
I don’t know much about cars, i want to eliminate all my debt I financed a new 2020 Kia Rio the beginning of the year. I have 17k left to pay. I want to get a used car and pay full cash or either finance at a lower cost and rate which I can eliminate within six months. What is the best option?
- JackolanternLv 72 months ago
Yes you can and many people do just that. But be careful when doing it because salesmen can take advantage of you doing it. Always look up the actual value of your vehicle in Kelly's Blue Book and the vehicle you have picked out to swap to and negotiate from there.
- thebax2006Lv 72 months ago
Your best way to lose the least amount of money is to sell the new car yourself. If you trade it in you're going to get screwed!
- 2 months ago
Why you do so!!
- Jay PLv 72 months ago
With depreciation and wholesale trade-in value factored in, that Kia is negative equity. In other words, your $17K debt is more than the vehicle is actually worth.
The best way to eliminate debt is to pay down your loan(s) aggressively.
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- Anonymous2 months ago
"i want to eliminate all my debt" so I went out and bought a new car??? Look to see if you can refinance the Kia at a lower rate. (Maybe they can do something for you.) But you are still stuck with paying the 17K unless you can find a sucker who will pay you 15K and you lose 2 K which comes out of your pocket to pay back the dealer his 17K(which you are committed to paying.) This is hoping someone will buy it at $15K and pay you cash and you can find the other 2 K to add to it to pay off the dealer. No magic. Just simple math. Now you got no car. Now you got to find your cheap beater and First earn the money to buy it and insure it and fuel it. and hopefully you bought one that does not need immediate repairs (or you can do the repairs yourself) Battery is most likely needed, tires possibly, muffler possibly and that is just to be road legal. Or it is "Hoofmobile" for awhile.
This is how you get out of debt. Screw the finance. If you can't cough up a few hundred dollars for a beater than you should walk. Then you owe no one anything.
Or your goal.
- FLv 72 months ago
You asked the same question a few weeks ago.
- ?Lv 72 months ago
Unfortunately your car is only worth around $10,000 as a dealer trade since it's now considered used. That means to be debt free you will have to come up with another $7000 in cash just to be debt free. You don't have to take my word for it. Go to a dealer and ask them.
Take it as a lesson learned. Car loans, apartment leases, and mortgages have long term commitments and consequences you can't easily get out of. The best option is to work on paying off the KIA and keep it instead of running out for something new.
- Anonymous2 months ago
The thing is your "brand new" car is it is now used. And, trading it is probably not possible without thousands in cash.
Eliminating debt is a worthy goal but getting rid of your new car is going to be expensive. Stop by Kia and ask them how much they will give you in a straight sale. That versus the $17k you owe is how much you are upside down.
You probably can't do anything for a year or two unless you double up on payments. Maybe refinance but there may be an early payoff fee so that may or may not be a good idea.
In a year or so if you still want to get rid of it, try to find a private party. You lose thousands whenever you do anything at a dealers lot.
Sell to a private party, buy from a private party and save thousands.
That said, its difficult to find buyers for high priced cars. Mostly under $5k is best.
- John AldenLv 72 months ago
Go back in time and buy the used car. Sounds like you will end up under water. If you have cash on hand to buy a used car, put it towards the new one instead and reduce the length of your loan and the interest paid.
- ScottLv 62 months ago
The 2020 hatchback model starts at $16,690 when brand new. How much do you think you could sell your car for right now?
There is a possibility that you owe more money than your car is worth right now.