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Posted in Auto Loans
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schelleMarie

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With a CS of 705, how likely is a bank going to let me transfer negative equity onto another car?
I'm about $5,000 upside down on my car and I want to get a different one. I'm shopping in the $15,000-$18000 price range for a 2012ish SUV. With a credit score of 705, prefect payment history, and proof of income, will a bank let me transfer the negative equity or will I have to pay it up front? I don't plan on putting any money down.

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Don't do it.

First off, don't do it.  You are already $5k upside down and in the hole, but buying another car that will also depreciate at 15% per year will only deepen and widen that same money pit hole.  You are setting yourself up for a lifetime of payments to cover the loss of value on both cars + taxes + fees + registration etc...  Imagine the financial mess you'll have in 5 or 6 years when having to replace that new SUV?

Second, no you won't have to pay it up front.  Your negative equity will get worked into the new loan after they reduce for whatever they pay for your trade-in.

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Depends

I think the answer depends on the value of the vehicle you are considering for purchase.  If the new vehicle has enough value to support the new loan amount, you should be able to get the full loan value.

Just be sure you like the vehicle and will be keeping it for a while, otherwise you will be rolling that negative equity over to future vehicles.

Just be sure before you make the decision.

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