I have two vehicles that I’m financing at the moment and I want to get rid of both of them but don’t know how to. My first car is a vw Jetta gli and it needs a new clutch, at the time I didn’t have the money to get fixed so vw put me in a second car with a new loan. I have two loans that I pay for and I want out of them both. I would like to trade both the cars in but I’ll be in almost 20k in negative. So I was thinking of trading one in for a lease to get rid of it and just doing the same for the other at the end of the lease. I just want my wallet back and not have to deal with this nightmare anymore. Any suggestions?
Lease wise, you’re in VA, you’d pay tax on the sales price of the car. That hurts any lease any way you speak of. Leasing is a tool to bury negative equity, to a certain extent. However, trading one would just add another bill. You’d pay full sales tax on the price of the car, the money factor / interest of the lease, and depreciation on that lease itself.
I don’t follow. Not to sound mean but VW could not have forced you into a new loan without you agreeing to the terms and taking delivery of the car being financed. What is the rate on both loans?
How much do you owe on each car? What has Carvana or Vroom offered you?
I would strongly recommend against rolling in that much in negative equity into a new lease. This is going to be a hard pill to swallow but why not pay down both cars until the negative equity is less than $20k.
You took a new note for another car because you couldn’t have a clutch fixed?
Yes cause it seemed like a good idea at the time now I’m regretting it big time. Also had my parents in my ear saying it’ll be good to have a second car for emergencies. That’s not the case now.
Gli is worth 7k that’s from carmax and the sport wagon is worth 12k also from carmax. I’ll still owe 7k for the gli and 10k for the wagon.
How did it seem like a good idea to own two cars 'cos you could not afford to fix the first car?
How old are you, if you don’t mind me asking? What is your credit score?
My advice still stands - Do not lease a new car. Keep paying down the loan on both cars.
It does not add up to $20k in negative equity. What are we missing?
Sounds like 2k equity?
Sell wagon to carvana/vroom. You will most likely get more than from Carmax. Then fix the other one, if needed.
He meant $17k owed total, I guess. Not the same as negative.
Please don’t get another car. I want to sell cars, and I cannot / will not do it in good conscience, repair the gli, sell it to carvana or vroom or shift, they offer more than carmax 90% of the time.
Please, leasing another car is a financial mistake, as bad as the original one, if not worse due to VA tax laws (sales tax same as loan, versus on payments like rest of country except TX and similar states).
i dont get it, if the GLI is worth $7k and carmax offered you $7k then you can just get rid of that one without a loss and keep the other one.
Yep, or sell wagon, pocket $2k and fix GLI
Either this person has no idea how numbers work (seen that a lot) or he means that his negative equity is additional 7k and additional 10k on these 2 loans
Remember the Dave Ramsey thread? Not everyone needs to listen to Ramsey’s advice about debt, but OP sure does.
Sell the car that’s worth the most if you can afford to. If not, sell the car you’re able to sell. If you can’t afford to replace a clutch you can’t afford two cars. You really can’t afford either of the ones you have.
I’m not trying to bash you but Have you missed basic math classes during middle school?
Lets all wait for OP to come back before we start sharpening our pitchforks…
This dude has to be trolling…
Maybe I wasn’t clear enough. I owe 14995 for my gli, CarMax gave me a quote of 7k for the car. On the wagon I owe 19038 and CarMax was giving me 12k for the car. (My math was off cause I didn’t look at the current payoff) All of that together we be around 15k. This was a big financial mistake that I’ve been trying to get out of for a couple of months.