Options Trading Tutorial

I tried to trade in my SUV and they told me I didn't have enough equity. What are my options?

I have a 2006 Isuzu Ascender SUV. It is a 2WD. It has a little over 18,000 miles on it. I went to the dealership yesterday just to see if I was in a position to trade it in and of course they told me I was upside down. I have had it for a little over a year and I bought it brand new. I traded in an Acura (was leased) for this SUV and I hate it. It uses too much gas and I miss the way driving a car feels. The Acura dealership appraised the car and said it was worth about $14,000 but I owe like $23,000. They also said my credit score is still on the low side. I have made every car payment on time, but we just got a new house so maybe that pulled my rating down some. He suggested I wait one year to a year and half to get ride of the Isuzu. I think my interest rate is 17-18% and my payments are $573.46 for 72 months. I know, not the best deal at all but due to my credit situation and the fact that I had to trade in that lease I had no choice. What are my options, if any?

Public Comments

1. Get a second job to make extra payments.Stop going to the mall,wasting gas and buying things you don't need.You just had a life lesson. A vehicle is just transportation to get you from point A to point B nothing more. They're not status symbols. Start living within your means. Stop buying imports!
2. You need to pay down $10,000 then you can trade it in. If the insurance is paid up perhaps you might forget to drive it home from a downtown parking site and a car thief will whisk your problem away, but wait a few days to report it so it gets cut up and doesn't come back all dirty to you.
3. You need to pay for the car for a while more. Most cars lose a lot of value as soon as you dive it off the dealers yard. The payments are on compound interest. the first payments are mostly interest, very little on principle. You are really starting to pay on the car and the value has been going down as soon as you drove off with it. being upside down is very common today when buying a car. You can either eat the loss and get a different car or drive the Isuzu for a year or more.
4. If you have GAP insurance I would HIGHLY suggest you do as another poster mentioned and have the car dissappear and reappear completely vandalized (flat tires, dented scratched body, gutted interior, etc....or simply driven into a river or caught on fire). Other than that you're F-ed big time. Here are some tips for your next car, especially since you now have a mortgage payment: a) Buy only Honda Accord/Civic or Toyota Camry/Corolla as they hold their value better than any others in their price class b) Buy a car that is 2-3 years old to AVOID the huge depreciation that ALL new cars have in their first two years c) If you're paying close to 20% interest buy a cheaper used car ($10,000 or less), ie. Civic or Corolla