Help on new car lease/ loan

I’m going through my own insurance because its a hassle to deal with the States claims. USAA typically takes good care of me. Its a no fault claim.

Pretty close numbers. 17k replacement. 21k payoff. 1k in state fees. Total payout is around 23k, but the 3600 goes to me and cap will cover the remainder of the loan.

Yes, I’ve been stuck driving them several times. In fact, I only have first hand experience with the current generation of terrain. If the current one is that much better than the previous generation, I can only imagine how much of a dumpster fire it must have been.

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More than 7 years for a car loan? I am no financial genius, but if you have to spread out a car note for that long, it usually means you have over extended yourself.

Lots of good advice from folks who want to help you. I hope you go with the financially-smart recommendation.

Don’t roll in any more negative equity.

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Sorry to sound curt in advance.

  1. Trailboss=Any particular reason you received a 4% apr?
    a) I would attempt to refinance that loan down to something more reasonable.
    b) Have you searched around at Vroom, Carvana etc to see if the trade in could be higher?

While trading in makes sense now, rather then later, you’ll be either rolling the neg equity into the new loan or lease and I assume $42k would mean someone between the two of you has to sacrifice on car size. I assume you need a truck so don’t know what you would split the budget on.

  1. Terrain=Yes a 0% loan is excellent, but whats the total cost, or even the dealer discount on one of those? You need to figure the basics on that car to get an opinion.

  2. The insurance matter others have covered. I’d personally try to take the money, and assuming that you need the second vehicle now and no way to wait,either find a legitimately cheap car to lease or look into solid used vehicles (need a PPI before signing) via all cash purchase or low financing.

I rolled negative equity into the loan when I purchased it. Had a colorado zr2 diesel that was going into limp mode with a 8 month pregnant wife and a 2 hour drive to the hospital. Kbb trade in is 45k, got a quote from vroom two days ago for 42k.

I dont really need a truck, I use it occasionally to tow some stuff for work, but I really need a 1 ton or larger for most stuff, so im borrowing my dads truck alot. I work night shift and the wife works days, so we just trade the truck off. Not the end of the world there. The wife just hates how big the truck is and it doesn’t fit in the garage. The space inside is nice, but the terrain fits both of us and the baby seat comfortably.

I haven’t got all of the details from the dealership yet. But here’s a link to it. Dennis Dillon GMC | Boise GMC Dealer for New & Used Cars
I’m still young and dumb, but im trying to learn from my mistakes and move forward. Hence posting on here, I appreciate the insight on everything. Just don’t want to make a dumb mistake again.

The dave ramsey/fiscally responsible thing to do would be essentially boiled down to keep the truck and share as you are right now. If you see an opportunity to refinance that would help, if you have more available finances get rid of that loan asap or at least remove the neg equity before upgrading to anything.

If the second car is a must, again with the dave ramsey mindset, you can find a solid used, inspected by a reputable, non-seller associated mechanic small car to help assist your wife would be the thing to go for. Camry/Accord/Highlander/Pilot/Rav4/Crv (non fuel diluting turbo variant).

The reason I would not recommend a Terrain, even at 0% would be that in the future I see it being a car that would be worth less then its loan amount after driving off the lot. So essentially you’d be at square one and having more negative equity.

Not a financial advisor so please do your own research before taking advice from random internet stranger lol

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Why not get all the details from the dealer? You might be surprised to learn that you may not qualify for all incentives included in the sale price.

Dave Ramsey would say…What is your household income?

Very interesting.
So the GAP should payoff your deficit and the new car replacement gives you the difference between this car and a brand new car.

Now if this was a lease, since the car is technically owned by the bank, they would get the ‘$3600’ right?

So if a lease, don’t bother with either the GAP or the New Car Replacement.

(Unless it’s a Toyota then get GAP)

I’m confused, then why did you get this truck if you don’t really need it?
I guess it doesn’t really matter… i would suggest not getting into more debt as that is never fun, no matter how much self control you have.

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