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Trade-in w/ negative Equity
So I originally purchased a BMW - the car was a lemon & had to get out of it (which I was upside down of course) I was extremely limited on what I could get I thankfully found my current vehicle; a 2011 Hyundai Tucson Limited.

Well I am now in a really good position financially & was looking into trading in the Tucson for something that I GENUINELY LOVE. BUT if it can't happen, no big deal.....But I was going to at least try & see what happens. I don't technically need the vehicle, my Tucson works perfectly (knocksonwood); just wanted to see if I could do it.

I am looking into trading in my vehicle; problem is there is negative equity. I am currently financing a 2011 Hyundai Tucson that I owe 18k on. It is appraising for 14k. The car I am looking at is a 2013 MB C350 under 10k miles listed at 28k.

My credit score is only a 655 and was approved for 28k loan w/ a 10% interest rate!!!! I do not want a co-signer. (I currently have one and do not want that this go around - really want to build my credit)

Can someone please explain to me how this would work if I'm trading it in w/ the negative equity? I've heard that the dealership will sometimes pay the difference of the loan OR roll it over to your new loan.

Is it a better idea to just hold off until I'm in a better position? I know I don't have the best credit score but I was definitely surprised with that rate. I'm also trying to get out of my car before the value lessens even more.

BLAH! I don't know what I'm talking about & this is so frustrating. :|

THX - Cecilia

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Want that car now or better interest %?

3k isn't all that much to roll over on to the new car loan, which dealers happily will... BUT if you can pay more than the minimums on your car and pay any other loans or cards down you could probably get a better rate with a better credit score in like 6 months... if you are driving the Hyundai a lot and think it will keep going down in value, you may consider jumping now, 10% isn't good but you'll be happy in the car you love... AND anytime you can pay a little extra a month on any car loan, you save a lot in interest and you can always re-finance in a year when your score is better. Hope that helps.

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