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Upside down on car loan vs. value of vehicle
My car is a 2013 exactly a year or less after I got it the new model came out. Dropped the value of my car significantly. There's a $7000 to $9000 difference between my loan balance and the cars current value. Any suggestions on how to turn this around without paying the difference to get another vehicle which holds it value a bit better?

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Reality check.

A new cars value drops by as much as 25% as soon as you drive off the lot.  It is now a used car.  News Flash!  New models come out every year, so you shouldn't be surprised that a newer model was available.   Unless the vehicle is a "Classic or Collectable" Any car you buy loses value as it ages. 

Unless you pay cash for a car You always owe more on the loan than its worth. Thats the reality of financing a car. and now that loans are as long as 72 or 80 months long, that statement has never been truer.

The only way that you can get a new car that will retain its value longer is to buy a very expensive luxury vehicle. and even then it will probably not hold value to the amount that is owed.  Thats the reality of financing a car.

If you want to avoid being "upside down" on an auto loan in the future, I'd suggest leasing. 

Good luck

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As Eddy already informed you this is any issue with a new car buy,. the only way to correct now, in your shoes, is make extra payments. There is no getting out of it without the difference. You can trade in and they can add the difference to your new car loan and you will be even MORE upside down on the new vehicle or pay the differnce in cash/extra payments. I will give few more options to help avoid it in the future. Buy used, you pay more for interest rates, but the upside down is not nearly (or non-existant) what it is on new. Or pay a good amount down with cash, paying 20-25% down with cash avoids the need for GAP insurance and you being upside down. Another option is keep the car until you have it paid in full, once it is paid in full you have a value to the car and dont owe anybody anything.

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I agree with the other two postings. I would suggest in the future to pay cash.  If you have funds invested, you can obtain a loan on margin at about 1% interest which is acceptable. Paying interest is wasted money, but a margin loan isn't bad. Mortgage interest is deductible and you could perhaps obtain a home equity loan and purchase a future vehicle with those funds.  I would only recommend this if you're going to keep your vehicle for many years though, and realize you have less home equity and a lien.

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