# trading in car and getting rid of a high payment



## Concerned_ Citizen

So.....In 08' like a *******, I purchased a Brand new Kia Rio of the lot..ya ya.......i know.....So, Now i have this 340 month payment.....Do I have any options of getting rid of this with a trade in? I am NOT concerned with loosing money, I am trying to reduce money that is going out every month.......I know how to work on older vehicles and would be willing to trade this car in for a MUCH older WELL running anything.......I just want to get rid of this car payment.... what options do I have....I currently owe more then bluebook.....


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## vn6869

Actually think Kia Rio is a pretty good buy - 10 year 100,000 mile warranty and all. I don't have one because its size didn't fit my needs, but have the Sedona with over 175K and no real problems.

The 340/month seems like an awfully high payment - don't think the car you bought was the problem, the financing is where you goofed. Unfortunately, that has to be paid off.
Options, 
:bullit: refinance with better terms - rates for used cars in this area are 5% or less.
:bullit: Sell car and buy cheaper one - BUT like you said if blue book is less than owed you're going to lose your shorts.
:bullit: Trading in is out of the question - the loan will still need to be paid off and you will pay the difference between the two cars. No dealer is going to even swap.

Sorry you got in this situation.


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## nj_m715

The $340 per month doesn't tell you enough to know if it was a good deal or not. You need to know how long he will be paying to get the final cost of the car. $340/m for 1 yr is a good deal, but for 10yrs it's not so good. 

Years ago when we were shopping for my wife's car I asked the salesman what is the bottom line, out the door price for a car. He asked my how much am I paying per month now and how much did I want to spend per month. I asked how much is the car. He ask how much can I spend per month. Suddenly I was arguing with a 2 year old. He didn't want to give me a bottom line number, he wanted to hide behind the "per month" number.

Getting something more affordable is always a good idea. I paid about $1,000-$1,200 for my daily driver 6 or 7 years ago. It doesn't owe me a dime. I can keep minimum insurance on it w/o thinking twice about it. If I go 1 year with out crashing it, than I'm saving money. Sure it needed brakes, tierod ends etc, but I'm still way ahead. I know enough to do most things myself. If you don't know you can get a book or watch youtube. Getting a car as old as mine might not save you money is you have to pay someone to work on it. My wife gets the "new" cars here. By new I mean a 2-5 year old trade in or lease return. I don't think I'll ever buy brand new. The hit is just too big. All these years later my car should still bring over $800. Try buying a new car and selling it 7 yrs from now for nearly the same price you paid.


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## vn6869

nj_m715 said:


> The $340 per month doesn't tell you enough to know if it was a good deal or not. You need to know how long he will be paying to get the final cost of the car. $340/m for 1 yr is a good deal, but for 10yrs it's not so good.
> 
> Years ago when we were shopping for my wife's car . . . He didn't want to give me a bottom line number, he wanted to hide behind the "per month" number.


Yes, I have known people that bought into that. That is definitely to be avoided Get to the bottom line first then worry about financing,

Concerned seemed more interested in getting rid of their monthly payment. Which to me seems high considering Rio's are economical cars.
You are correct, if it is 340 for a year that is not all that bad, but suspect a monetary crunch is in play.


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## mmszbi

I also made the mistake of trading 'down' once, thinking that a lower payment would help only to realize that the difference was still owed. To this day I am still paying for the second vehicle as I unfortunately was not able to afford it either and gave it back to the bank. I am still paying on the balance but at least no interest is accruing.
I bought an old truck, runs well, no payments, can afford to fix stuff and old enough truck that I can still fix it.
I would suggest that you ask a reputable used car lot to sell it for you on consignment, you may still end up with a small balance owed but you will be out from under the vehicle.


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## vn6869

mmszbi said:


> I also made the _mistake of trading 'down' once_, thinking that a lower payment would help only to realize that the difference was still owed. To this day I am still paying for the second vehicle as I unfortunately was not able to afford it either and gave it back to the bank. I am still paying on the balance but at least no interest is accruing.
> I bought an old truck, runs well, no payments, can afford to fix stuff and old enough truck that I can still fix it.
> _*I would suggest that you ask a reputable used car lot to sell it for you on consignment,*_ you may still end up with a small balance owed but you will be out from under the vehicle.


Thanks that was the point I was trying to get at.
The selling on consignment is good, but also let's not forget craigslist, etc.


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## BadgeBunny

mmszbi said:


> I also made the mistake of trading 'down' once, thinking that a lower payment would help only to realize that the difference was still owed. To this day I am still paying for the second vehicle as I unfortunately was not able to afford it either and gave it back to the bank. I am still paying on the balance but at least no interest is accruing.
> I bought an old truck, runs well, no payments, can afford to fix stuff and old enough truck that I can still fix it.
> I would suggest that you ask a reputable used car lot to sell it for you on consignment, you may still end up with a small balance owed but you will be out from under the vehicle.


This is very similar to what we did. Had a really cute 08 VW Convertible ... totally impractical for anything but running around with the top down looking cool. 

Although VW did their gut level best to get us to refinance the balance at the end of the lease we chose to let it go back and buy two older vehicles for cash. If I had half the money I had thrown away on that lease ... :ignore:

That VW was the dumbest decision, as a couple, we have ever made. :sssh:

To the OP ... that was almost 3 years ago now. That VW is sitting in a used car lot (same one ... I recognize the scrape my AR-15 put in the fender when I leaned it up against the car one afternoon at a 3-gun comp) down the street from us ... They are still trying to get $10K outta it ... 

It may seem like it will cost you to let it go, but you will be amazed at how quickly you will "recoup" your losses once you bite the bullet and just do it.

Good luck!!


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## nj_m715

I would try to sell it yourself. Any consignment is going to take a bit of he apple. I would only go that route if I was busy making more money somewhere else, 2nd job etc. Put in your own time and pay yourself when you sell it. Why pay someone to something you can do?


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## Concerned_ Citizen

The car is in good shape and it is nice to know its covered if it breaks down.....My main thought in to why to get rid of this is that I firmly beleive its imperative that we be spending our money on more immediate goals and i am trying to free up any extra money that is possible to get things that will be useful to us if and when the crap starts flying......Things such as Handpump for our well, Gate to secure the property, Firearms and ammunition, non electric ha tools etc......

We just bought our home and we are in the process of trying to equip it before its to late......and budget wise, we are still a bit tight due to me spending money wrongly in the past....im jus thinking that we could really put that 300+ to better use......we still owe like 9 grand and paying 10% interest with a five year loan....so we have like 3 more years to pay on it....


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