[iminhell1]

Generally speaking, should I expect to get more trading my vehicle in on another used one or on something new?

I'm underwater on it for all the reasons, bought at the wrong time, too many miles, it's a kia ...
Just got my insurance renewal and they want over double what I was paying. Nope. Won't happen, and I can't afford it. $3,300/6mo, clean driving record.
This thing has to go.

[vreihen16]

I can see why Hyundai and Kia insurance is going through the roof, with TikTak posting videos how to steal them with a USB drive.

I'm not in car sales or anything, but would think that you would have an easier time with a new car dealer who can work with wrapping your underwater trade-in into a new car's financing. Obviously get an insurance quote first, though!

Out of curiosity, have you asked Carvana for a quote to buy it from you outright (not trade it in)? I've seen their "techno-wizardry" make some generous offers when playing with their system.....

[NSXR]

Originally Posted by iminhell1

Generally speaking, should I expect to get more trading my vehicle in on another used one or on something new?

Yes, "trade in" value can change depending on what you're trading on.

This is because trade in value is actually ACV (actual cash value, ie wholesale) + discount. So the value literally changes depending on the markup available on what you're trading it for. However, dealers don't like to let this cat out of the bag, so they usually start with the lowest wholesale value for your car then move upwards towards the highest wholesale value. But it's still wholesale, meaning the value is that which they can resell it for.

Selling your vehicle to someone that wants to resell it (a dealer) will get you the least money, and selling it to an individual that wants to keep it will get you the most money.

I never recommend trading a vehicle in. It's so crazy easy to sell a car outright these days, and you make so much more, it's just a way better option. And it sounds like selling it outright would be your best option since you're already upside down.

If you're in a crazy hurry and want the real figure for your car, not what the dealer will jerk you around for, you can visit all the used car lots in your town asking them one by one what they would buy your vehicle for, then just sell it to the highest bidder. Takes a bit, but you'll be guaranteed to get the most money, not be "shown" the most money through number trickery.

Then take the money to the dealer of your choice and beat them up over the price, using other dealers against them.

[2000cs]

Usually the least expensive option is to keep the car you have.

Review your insurance including deductibles to take the risk you can afford and eliminate coverages you don’t need (rental car reimbursement if you have a second car, for example). Shop around for another carrier - it could be your company doesn’t like the auto business, state you’re in, or something else is causing them to price up instead of just canceling policies.

Accelerate payments to get ahead of the negative equity and get out of making payments faster. You don’t have to double the payment to get a benefit, but you do have to be sure the extra is going to principal and not prepaying interest.

A new car just repeats the cycle, starting with the “off the lot” depreciation.

[ASAP]

Originally Posted by 2000cs

Usually the least expensive option is to keep the car you have.

Review your insurance including deductibles to take the risk you can afford and eliminate coverages you don’t need (rental car reimbursement if you have a second car, for example). Shop around for another carrier - it could be your company doesn’t like the auto business, state you’re in, or something else is causing them to price up instead of just canceling policies.

Accelerate payments to get ahead of the negative equity and get out of making payments faster. You don’t have to double the payment to get a benefit, but you do have to be sure the extra is going to principal and not prepaying interest.

A new car just repeats the cycle, starting with the “off the lot” depreciation.

my absolute favorite is when folks purchase a 50k hybrid to save on gas money that wont be made up well like ever

[DocL]

Cars don't float. Just saying.

[xander_g]

Originally Posted by DocL

Cars don't float. Just saying.

I read that they are also flammable.

[NSXR]

Originally Posted by 2000cs

Usually the least expensive option is to keep the car you have. A new car just repeats the cycle, starting with the “off the lot” depreciation.

This is great advice. It hurts, but it hurts less I think.

[vreihen16]

Originally Posted by DocL

Cars don't float. Just saying.

.

[DrVenture]

Trading in is about convenience for most people. In this case (under water), you will need to find a willing buyer and come up with cash to sell private party.

KBB.com will give you private party vs trade-in values for reference. Unless you can buy something with a much lower insurance cost, as stated above, you will end up paying more in the long run, as opposed to keeping your car.

To know what you are actually getting on trade-in, do what I do, negotiate your best price without any trade-in. Then ask about trade-in value. Be prepared with Carvana, Carmax, etc offers. And carefully consider your current interest rate against your new rate. If you are paying 4.9% now and are being offered 0%, do the math on your current balance to see what you might save.

If you can get a much better rate and your insurance drops significantly, and you can sell private party, you might come out ahead by a small margin. Otherwise you could be digging a deeper hole.

[ASAP]

something important to keep in mind is that some states (fl for example) have a tax advantage when trading in a car so you pay tax only on the net difference and can save you money... that's done on the value on the car not the equity so it could help you save a little

[JMcLellan]

Are you certain that the next car is going to be much less in insurance, and I'm guessing you are looking for a cheaper car as well?

I have had luck selling cars privately on FB marketplace and got more than what dealers trade in offers were. However, depending on where you live, if you sell privately vs trade in you miss out on the sales tax break from your trade-in allowance.

[iminhell1]

I'm always wary sharing info if no one is willing to respond. Thankfully you guys are being helpful. Thanks for that.


So it's a 2021 Kia Seltos SX with 120,000 on the clock. That's the huge downside here. It really has no value. Just looking I can buy one similar with under half the miles for $15k or so. I don't know the payoff amount, but the remainder on my monthly is about $25k ... like I said I bought at the worst time.

I was paying about $1,100/6 months. A $2k+ jump? The mafia isn't even that dishonest.

Carvana online thing says $7,800. I expected that.

[IanH]

Id shop around for the cheapest cut rate insurance I could find and keep driving the junker. Its not worth it to roll negative equity into another car.

You are going to run up against a predatory loan on the next car. Most legitimate banks will only let you finance 120% of the purchased car value. So in order to make up the 10-15k gap you would need to buy a pretty expensive car without the cash on hand.

Credit is not good I assume? (Based on the financials disclosed, not trying to be a dick)

[Tyga11]

How is it possible your car insurance is that much on a Kia? In Minnesota with a clean driving record?

[Bc2005]

My first advice - spend time to do the math so you know all the costs. And to do that you need more information

It’s a bad sign that you don’t know the payoff for your current car. Give them a call and get the payoff and the interest rate you are paying. Consider paying extra each month so you are no longer under water with the loan.

As already mentioned, look hard to find a better insurance rate. If it’s bad now it won’t get better just because you buy a different car.

Submit your car to get a quote from Carvana, KBB, snow any other online source you can fine.

Once you get all the info, make a plan to either keep it and pay it off, or to make a deal and trade it in. Remember that if you pay it off you will have the option of canceling your collision and comprehensive insurance. I spent many years with only liability insurance because I was a young driver and that is all I could afford.

[2000cs]

Originally Posted by vreihen16

.

I remember this and the VW ads about their cars floating. I also recall a National Lampoon picture of a floating bug with the caption along the lines of, “If Teddy Kennedy had been driving a Volkswagen, he might be president today”

Sorry to the OP for taking your thread astray

[vreihen16]

Originally Posted by Tyga11

How is it possible your car insurance is that much on a Kia? In Minnesota with a clean driving record?

There is a TikTak challenge out there that provides instructions for kids to steal Hyundai/Kia cars with nothing but a USB stick.

The theft rate for them both with kids joyriding and regular criminals looking for getaway wheels is so high that some insurance companies are actually sending free "the club" steering wheel locking bars to their insureds, and a few are actually dropping them or refusing to write new coverage for someone buying one used.....

[afadeev]

Originally Posted by Tyga11

How is it possible your car insurance is that much on a Kia? In Minnesota with a clean driving record?

My guess is that OP is <25 y.o., thus the exorbitant insurance premiums.
I've just added my teenager to our insurance policy. It wasn't THAT bad, but almost 1/2 the cost of what the OP is paying, and more than the cost of insurance for everyone else on all the cars, combined.

To OP - shop around for insurance from other companies. Then shop around (find a VIN) for the cost of insurance for potential alternative vehicles. My guess is that you will save more by switching insurance companies than cars!

HTH,
a

[B58-M340iX]

Originally Posted by DocL

Cars don't float. Just saying.

They may not, but they can be recorded

https://www.reddit.com/r/IdiotsInCar...s_into_a_lake/

[vreihen16]

Originally Posted by DocL

Cars don't float. Just saying.

Originally Posted by xander_g

I read that they are also flammable.

If you are suggesting a "boating accident" or poorly-timed trip to Malibu, I'm sure that the insurance payout would be based on the blue book value and not the outstanding loan value (unless someone paid extra for gap insurance or a declared-value policy). The OP would still be in the same pickle.

Speaking of Pickle, has anyone heard from him lately?????

[DocL]

Originally Posted by B58-M340iX

They may not, but they can be recorded

https://www.reddit.com/r/IdiotsInCar...s_into_a_lake/

That was because the driver of the Bugatti was stupid. Back in the 90's, cars weren't driven on purpose into a lake. Somehow they ended up submerged near Staten Island.