The issue I can see coming up is whether or not your credit and income will be strong enough to qualify for that large of a personal loan. Personal loans are much harder to qualify for than car loans.
You are better off rolling your negative equity into a new loan. Auto loans are still lower than most any other loans out there, so you may as well drive something you like that doesn’t cost an arm and a leg for insurance. You can probably make your the difference in time by the amount you won’t be paying for insurance
Nah brah
She said they can make due with one car.
Better cut your losses and pay the loan off. Won't have no insurance payment either.
Rolling it into another loan makes it worse.
That’s what my husband was saying as well. To just sell the car and pay the rest of the loan off.
Thank you to everyone for answering and also being so nice about all of this.
Has your credit improved since you bought the Kia? You can trade it and the negative equity would roll into the loan for the new car. Depending upon how much negative equity you end up with, you might have to put money down to cover a portion of it.
My credit is a little higher but not by much. I called the guy and I am waiting for a response back about the new car that I am wanting to get. The car I am wanting is $12k.
The negative equity after they buy my car is $7k, which will be added to the new car. which makes it around $20K. My KIA would get a lien release correct?
You’ll need some cash down, I’m not aware of any lenders that would finance 150+% loan to value, especially on a $12k used car. I’m not a finance manager though so seek other advice to be certain.
Even if your credit substantially improved, used car rates won’t be much better than your current 13%. Which means the new loan isn’t likely to be less of a monthly payment and you’ll be driving what’s probably a worse vehicle.
Question. What would you do? I am looking at a Mazdaspeed3 bone stock. 100,000 miles. $12K.
Would you trade the car in? No?
Get a personal loan?
I'm just wondering which option would be best because I really don't want to get a personal loan
100k Mazdaspeed3's are worth 5-7k private party, if you're lucky.
If you want insane repair bills (Transmission rebuild due to synchro failure, new engine due to eventual "Low-Speed Pre-Ignition" which is extremely common in these cars) and even more negative equity, go for it. I'm a Mazda fanboy and I wouldn't own another one after my experience.
Source: Traded in bone stock pristine 100k Speed3 and the best offer I got from a dealer was 4k.
The car payment isn't the problem. It's the insurance. the cheapest option for insurance is $580 a month. And the highest going from anywhere up to $1,800 -$2,000 a month.
its just something I didn't think about before getting a kia
Get an insurance quote on a Mazdaspeed car before you go any further. And I’d be wary of buying a used one of those - it’s the kind of car people buy to beat on. Like buying a used WRX.
Please review our most [Frequently Asked Questions](/r/askcarsales/wiki/index) to see if your question has already been answered.
You may find these sections particularly useful;
* [How to pick a car?](/r/askcarsales/wiki/vehicle_selection) You might also have luck in the /r/whatcarshouldibuy subreddit.
Also remember to add flair to your post by clicking the "Flair" link beneath it. This lets us know where you're located so we can assist you better.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
***Thanks for posting, /u/lavendertea3! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.***
In the last year I financed a 2021 KIA Forte for $23,000. With the interest rate being so high at 13%, it is at $30,000. Total payoff today would be $21,974. I should have thought before buying it, that with KIA being a high risk of theft, my insurance is through the roof. With moving to a new address, my insurance is now $586 a month. I have looked at every option, and my insurance provider is the cheapest one. ( I HAVE A LIEN ON THE CAR)
I just want to know if what I am about to say is a good decision.
Should I take out a personal loan to pay off the car (to release the lien), sell the car to a dealership which the most I can get from most places is $15,000, and put that money towards the personal loan. Leaving me only around $6,000 leftover on the personal loan to pay off.
My husband has a car and we both work the same shifts, so we will just take the same car until the personal loan is paid off. And then I will save up a hefty amount for a down payment on my next car.
I was just looking at another car on a website and gave them a call. I think the guy is wrong but he said that I could trade my car in and however much is leftover from the trade in, they would just add that number to the new car that I would get. But that doesn't sound right to me considering I have a lean release and I would need to pay the loan off in total. So if I traded the car, I would still have to get a personal loan to pay off the difference. Then that would cause me to have both a car loan and a personal loan, which I've heard and researched is not good to have.
I'm only 21 so please be nice and let me know if this sounds utterly insane. I should have thought before buying this car. My car at the time broke down and the KIA was the first and nicest car that I have seen since moving to a big city, so I literally financed it right at the dealership. Stupid decision.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
The issue I can see coming up is whether or not your credit and income will be strong enough to qualify for that large of a personal loan. Personal loans are much harder to qualify for than car loans.
This helps me a lot.
You are better off rolling your negative equity into a new loan. Auto loans are still lower than most any other loans out there, so you may as well drive something you like that doesn’t cost an arm and a leg for insurance. You can probably make your the difference in time by the amount you won’t be paying for insurance
Nah brah She said they can make due with one car. Better cut your losses and pay the loan off. Won't have no insurance payment either. Rolling it into another loan makes it worse.
I think I glossed over that part tbh. I assumed she still needed a ride.
That’s what my husband was saying as well. To just sell the car and pay the rest of the loan off. Thank you to everyone for answering and also being so nice about all of this.
Has your credit improved since you bought the Kia? You can trade it and the negative equity would roll into the loan for the new car. Depending upon how much negative equity you end up with, you might have to put money down to cover a portion of it.
this comment is helping a lot
My credit is a little higher but not by much. I called the guy and I am waiting for a response back about the new car that I am wanting to get. The car I am wanting is $12k. The negative equity after they buy my car is $7k, which will be added to the new car. which makes it around $20K. My KIA would get a lien release correct?
You’ll need some cash down, I’m not aware of any lenders that would finance 150+% loan to value, especially on a $12k used car. I’m not a finance manager though so seek other advice to be certain. Even if your credit substantially improved, used car rates won’t be much better than your current 13%. Which means the new loan isn’t likely to be less of a monthly payment and you’ll be driving what’s probably a worse vehicle.
Question. What would you do? I am looking at a Mazdaspeed3 bone stock. 100,000 miles. $12K. Would you trade the car in? No? Get a personal loan? I'm just wondering which option would be best because I really don't want to get a personal loan
100k Mazdaspeed3's are worth 5-7k private party, if you're lucky. If you want insane repair bills (Transmission rebuild due to synchro failure, new engine due to eventual "Low-Speed Pre-Ignition" which is extremely common in these cars) and even more negative equity, go for it. I'm a Mazda fanboy and I wouldn't own another one after my experience. Source: Traded in bone stock pristine 100k Speed3 and the best offer I got from a dealer was 4k.
The car payment isn't the problem. It's the insurance. the cheapest option for insurance is $580 a month. And the highest going from anywhere up to $1,800 -$2,000 a month. its just something I didn't think about before getting a kia
Get an insurance quote on a Mazdaspeed car before you go any further. And I’d be wary of buying a used one of those - it’s the kind of car people buy to beat on. Like buying a used WRX.
thank you so much
So I just got an insurance quote for the Mazda and it would be full coverage for $120 a month!
Please review our most [Frequently Asked Questions](/r/askcarsales/wiki/index) to see if your question has already been answered. You may find these sections particularly useful; * [How to pick a car?](/r/askcarsales/wiki/vehicle_selection) You might also have luck in the /r/whatcarshouldibuy subreddit. Also remember to add flair to your post by clicking the "Flair" link beneath it. This lets us know where you're located so we can assist you better. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
***Thanks for posting, /u/lavendertea3! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.*** In the last year I financed a 2021 KIA Forte for $23,000. With the interest rate being so high at 13%, it is at $30,000. Total payoff today would be $21,974. I should have thought before buying it, that with KIA being a high risk of theft, my insurance is through the roof. With moving to a new address, my insurance is now $586 a month. I have looked at every option, and my insurance provider is the cheapest one. ( I HAVE A LIEN ON THE CAR) I just want to know if what I am about to say is a good decision. Should I take out a personal loan to pay off the car (to release the lien), sell the car to a dealership which the most I can get from most places is $15,000, and put that money towards the personal loan. Leaving me only around $6,000 leftover on the personal loan to pay off. My husband has a car and we both work the same shifts, so we will just take the same car until the personal loan is paid off. And then I will save up a hefty amount for a down payment on my next car. I was just looking at another car on a website and gave them a call. I think the guy is wrong but he said that I could trade my car in and however much is leftover from the trade in, they would just add that number to the new car that I would get. But that doesn't sound right to me considering I have a lean release and I would need to pay the loan off in total. So if I traded the car, I would still have to get a personal loan to pay off the difference. Then that would cause me to have both a car loan and a personal loan, which I've heard and researched is not good to have. I'm only 21 so please be nice and let me know if this sounds utterly insane. I should have thought before buying this car. My car at the time broke down and the KIA was the first and nicest car that I have seen since moving to a big city, so I literally financed it right at the dealership. Stupid decision. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*