Should i keep my hatch or try to trade in?

[Brvndxn]

So i bought my used 2017 civic sport hatch ack back in sept 2018 and has been a fun car with my ktuner and prl intake but has 65k miles already and $420 monthly payment 10% interest and i have already tried to refinance the car but the value was only $16,000 but owe more than that so im wondering if i should just keep the car and make it last into the 100k range or try to trade up in a year or so?

Sponsored

 

[quakaroaks]

Depends on your financial situation.

Options are (if you are able), to pay more than your monthly payment to minimize your financial losses during an eventual trade down the line and, still have a remaining balance to pay off and in addition have to owe on top the value of your (future) new vehicle.

If you decide to keep the vehicle into the 100k range and still have a significant balance remaining, you are paying beyond what the car will be worth. You're taking a significant depreciating hit with high mileage and whatever payments you have left. It's kind of a lose-lose situation.

Last resort to consider, is selling to a private party, and buy a used vehicle and offset your losses with whatever payments you owe.

Wish you the best on your decision.

 

[racer]

mm negative equity.. that's a tough one to get out of.. and no point rolling over negative equity into the next car. imho, the car will last. you may have some maintenance along the way.. but there is no reason to think it won't go 150-200K miles.

The other issue is, what other transportation is available to you? If you sold the car and paid off the negative equity, how will you get to where you need to go? You also don't mention if you can't afford the car currently, or if you are just annoyed its worth less than you owe.

The cheapest car is the one that you own outright.

 

[87elco]

These are obviously just highway miles and they really don't count. just pay it off and keep it till it dies. 10% interest Sounds like a carmax deal I'm so tired of those guys ripping people off

 

[Brvndxn]

These are obviously just highway miles and they really don't count. just pay it off and keep it till it dies. 10% interest Sounds like a carmax deal I'm so tired of those guys ripping people off

Not carmax but basically can call them that , but can’t blame them i was 21 and first time car buyer with no cosigner so they just took a chance

 

[pcsavvy]

Welcome to the forum.
Car Dealerships can either be the worst or best experience in buying a car. It is hard for folks when first starting out in the car buying life to figure out what car to get, where to go and who is willing to work with you. Do not trade in your car cause you will be in worse shape owing the balance of this car and the "new" car you decide on. I have been there, I injured my arms at work and could no longer drive my 2011 Kia Soul with manual so in I traded it in for a 2013 Kia Soul with automatic, same exact car but 2 years newer. The dealer totally ripped me off on that deal and I was so under water there was no way I would be able to refinance to lower payments. Hang on to this car until you pay it off. Just keep up on the maintenance and you should have minimal issues.

 

[solar]

If you owe more than its worth, you're "upside down" on your car, which means even if you trade it in, you're going to have to pay the difference of the value to the principal on it. A lot of dealers will "payoff" your existing loan, but just roll over the balance into your new car payments, which really means that you will be paying a percentage of your payment towards a car you don't even own anymore. Trading it in will just put you farther in debt.

My advice would be to try and put more money towards the principal of your car, even if its just $50 more per month, and get the principal reduced enough to where you might be able to refinance it.

 

[TypeSiR]

So i bought my used 2017 civic sport hatch ack back in sept 2018 and has been a fun car with my ktuner and prl intake but has 65k miles already and $420 monthly payment 10% interest and i have already tried to refinance the car but the value was only $16,000 but owe more than that so im wondering if i should just keep the car and make it last into the 100k range or try to trade up in a year or so?

Refinance as soon as possible for the balance at a credit union, local bank or lightstream.com. Shop around for better rates. Don’t trade it in. Good luck.

 

[pcsavvy]

These are most likely your options at this time with this car.
Trade it in and be more underwater with the newer car.
Check with NADA or True Car or Edmunds to get a rough estimate of the current value of your car, see how much underwater you are with your current loan. Then pay down your principle by paying a little extra each month and eventually have your car worth more than the loan. Then you can refinance for a lower payment or trade it in with some equity.
Pay the minimum payment until you pay off the car, keep the car and have no payments or trade it in for whatever value it has at that time.

 

[Brvndxn]

Refinance as soon as possible for the balance at a credit union, local bank or lightstream.com. Shop around for better rates. Don’t trade it in. Good luck.

Hey whats up man i just applied with lightstream.com and was wondering if you have ever used them and if they were legit and good because i see mixed reviews and just want to have a smooth process and all that

Sponsored