One of the most challenging things for car buyers is when a situation arises where their current vehicle becomes either unsatisfying or unaffordable. What can you do when you need to get a new car even though you still owe money on the one you currently own?
The fastest solution is to roll the negative equity (what you still owe) into the new car loan. While some dealers will allow you to do this, there are a few factors you need to consider, such as the remaining balance on the current loan, and the quality of your credit.
How much do you owe?
If you still have a large amount left to pay on the current auto loan, this could cause problems when attempting to roll it over into another loan.
How is your credit?
Keep in mind that your interest rate will change for the new loan. If you had a clean credit history when you took out the loan on the current vehicle, but have damaged credit now, it could seriously impact how much you pay, especially when combined with your negative equity.
The Bigger Picture
Before you add more to your plate, you should give some serious thought to the following questions.
Have you thought about selling the car?
While this is a more time consuming process, selling the car yourself will increase your chances of getting the full value of what the car is worth.
Why do you want to get rid of the vehicle?
Some common reasons car owners choose to get rid of their current rides are because they're dissatisfied with the car or because the monthly car payments are no longer affordable.
To avoid piling debt on top of debt, be patient and look for other ways to deal with the situation, such as finding ways to maintain the payments by making adjustments to your budget, or by selling the car yourself.
Rolling Into the Future
If you have damaged credit or are looking to find a new vehicle to replace your current one, Auto Credit Express can get you where you need to go. We have a nationwide network of bad credit car dealers who are ready to help you. Once you fill out our fast and secure online application, we can arrange a time for you to meet with the dealer who is best qualified to finance you.