BEST WAY to TRADE in a CAR with Negative Equity

[@tamaradanielle3299]

I have 5-6 thousand in negative equity... I'm definitely going to try to make some extra payments and keep it until I'm not upside down. I just hate putting so much into a car that I don't plan on keeping. Thanks for the advice 😊

[@DiamondEdwards]

That a smart move🙌 This should give you a little motivation kzbin.info/www/bejne/e32Uep-vestjY80

[@exquisite921]

This is what I’m dealing with now it’s so frustrating bc I don’t wanna put extra since I’m not pleased with the monthly payment that I’m currently in smh

[@saylorgirl799]

I’m in the same situation. $6K upside down on mine.

[@ussssaaabixchh]

Man I’m down 10k I’m bouta make something shake 🤬😴

[@sarahcolbert2016]

I’m about 4K upside down. I went to a dealership to look at a used GTI and the sales guy did everything humanly possible to try and get me to roll over that much money into a new loan. He tried to make it seem like such a great deal and that they were helping me out but I work at a dealership and I know how they move money around to make it seem like a “good deal”. On the bright side, I saw just how stupid it was to even try to look at new cars at this point and I decided to just keep driving my car. Best decision I’ve ever made.

[@DiamondEdwards]

I love it! That's the best way to stop the bleeding. I'm happy for you!👍

[@jketphanh22]

I wish I did this .. I sold my Acura TL type s that I fucking loved I redid the whole entire car the engine . Coilovers exhaust etc. and traded it i for a gli . Months later , I dislike the car compared to my other one. Now I’m 5k upside down plus all the money i loss putting into my old car :(

[@roamingrook5942]

Come to the conclusion its best to just keep my car. Its reliable and I can pay it off in 2 years. Thanks!

[@user-oh6zn7bi2z]

YOUNG MAN, YOU DID A GREAT JOB EXPLAINING THIS!!! I HAVE SUBSCRIBED TO YOUR CHANNEL!

[@DiamondEdwards]

Thank you for the compliment and sub! I have a lot information I want to share. I try to improve with each weekly upload!!!

[@sheilasimpson7092]

This is an EXCELLENT education! You walk people through the array of contributing fact so well. Excellent.

[@DiamondEdwards]

Thank you Sheila for supporting the channel and your kind words. Welcome to the community!

[@jlothat77]

We’re stuck with a very large monthly payment with Ally Auto they charged us a lot in interest we’re 11,000 in negative equity on a 7 year old vehicle

[@DiamondEdwards]

Keep and drive it while making extra principal payments. If Ally won't allow principal only payment and refinancing it is out of the question then I would save up my extra money in a separate account until I had enough to pay it off and make one big payment! What ever you don't know go and get another car. Clean up this one first and use the knowledge you learned to guide you in future car purchases.

[@marioencarnacion7915]

Same position ally auto sucks

[@Jett_Jackson425]

Damn I’m in the same boat with Ally Financial I freaking hate them with my soul!

[@MXI4EVER_]

please if u go to a dealer whenever u hear Allys run away dont buy that day wait theyr so bad and have high rates…i’ve been a victim once but escaped bc of accident

[@_sandy_ravage]

Thank you so much! I was looking for an answer to this question and have watched multiple videos seeking guidance, yours offered the most clarity and logical steps. I am confident that I can make an educated and confident decision while making this transaction. Much respect, Diamond! Thank you!

[@DiamondEdwards]

Wonderful! I love it!

[@jeremysalazar9532]

Best video I have seen on negative equity, earned my sub.

[@DiamondEdwards]

Thanks you so much. This sub means a lot because it hit a personal milestone 604! 😁

[@vionettebarreiro1859]

Right?! Explained so easily!

[@marclemar]

Funny thing is I know all of this!!! But even I need to hear “the best option is to keep it” because it just confirms what I already know but may not want to hear. Before my career in HR I was an auto finance collector for 12+yrs and I had to collect on deficiency balance post repo. I had to explain this to almost every customer “why do I owe x amount” after it was sold at auction

[@DiamondEdwards]

I need you in the comments on my auto loan videos. You can be like the inside man telling people what to expect after the fact. We all have heard of those dealer auction where they get cars dirt cheap. They just never told us the difference was paid by unsuspecting car buyers!

[@marclemar]

@@DiamondEdwards oh yes the bank sells it for what they can get, applies it the the owed balance and collects on the rest from the customer if not paid it’s charged off... customers usually settle on the balance: I advise wait until End of the month the last week, call in and settle for 40-50% of the balance. Deficiency collection like sales dpt is trying to hit goal at EOM

[@daniellesully86]

Am like 17,000 in negative equity on a 5 year vehicle. I wish they taught this in school. Thank you so much for this video.🥰

[@DiamondEdwards]

The bleeding stops now! Go with the "best" option and dig yourself out of this hole. You will never purchase cars the same again. Thanks for watching and I'm glad it was helpful.

[@daniellesully86]

@@DiamondEdwards I tried a couple lenders, but none that we good. If I took ill be starting all over because I have over a hundred thousand miles on my used nissan rough 16 vehicle. Ughhhhh....

[@DiamondEdwards]

What is the balance of this thing? Keep up with the maintenance, and keep making those principal payments. Don't let the mileage scare you. It may go to 200k! I don't think I need to tell you this as I am sure this is how you got into this deal but whatever you don't trade it in because the $17k can turn into $30k negative. I've seen it happen right these comments. What is the balance of this thing?

[@daniellesully86]

@@DiamondEdwards thank you and the balance was $17,000 but I got it down to 13,000. Also at first I was going to trade it in to the dealership, but watching your videos help me understand not to do that. So thank you.

[@DiamondEdwards]

Danielle Sullivan That is good progress. Keep up the good work!

[@originaldevelopment]

someone should pay you to speak to our children(and adults) about this information. you could change the world my friend. thank you for sharing your knowledge with us.

[@DiamondEdwards]

Too kind. Thank you!

[@EAADetailing]

Bought a car with a 580 credit score. 15% APR so im getting nailed hard. Now my score is above 760 and I tried refinancing the car, bank wouldn't do it because the car is worth about 4/5k and I owe 10k. Thanks for the tips my man.

[@DiamondEdwards]

Just go with the "Best" option I described in the video. We live and we learn so move forward and you will get this loan paid off and I bet you will never make that mistake again.

[@veronicaturner5050]

My husband was 13k upside-down in his previous car. We were able to get rid of it last year with used car prices being so inflated. My car was 3k positive, and his was 6k negative so we traded both and rolled over 3k

[@triplebyouknowme6743]

But don’t you need 2 cars for you and your husband ?

[@bradking5267]

Thank you so much for that information about negative equity cause I tried to surely trade in my car today and come to find out I have negative that it more is still owed on it than what the trade in price would've been and I'm in the upside down position like you said about that, I done had it for only about 2 years when there is a total of 63 months on it to pay it off, you're an honest person, I wanna thank you for that great advice about negative equity, I sure wanted to get a new car today but it did not work out in my favor,

[@esmokah]

Best way is to have gotten gap coverage and find a telephone pole to hit.

[@DiamondEdwards]

U forgot the J/K! We don't want people going to prison over a car payment lol.

[@wendellmotton4982]

@@DiamondEdwards what is JK?

[@DiamondEdwards]

@@wendellmotton4982 just joking 😄

[@josephsmith4186]

😂😂😂😂

[@rafaelalmo]

Lmao...

[@RegularDudeInTraffic]

I swear man you said oh you owe $8000 dollars on your car loan and I was like is he reading my mind. This was literally me because I was in a rush to buy a vehicle as I needed it for work and I made a lot of mistakes I am now realizing.

[@DiamondEdwards]

What type of car did you get?

[@RegularDudeInTraffic]

@@DiamondEdwards Ford Fusion Hybrid 2019, of course now I am a little older and slightly wiser I see the mistake I made. I depend on my transportation as my work is 40 miles away and there is no public transportation to my work, no bus or train and Uber is too much. And no one to ride with as everyone loves too far away. If I had this advice when I was looking for a car I would have avoided all of this. Lesson learned

[@DiamondEdwards]

Hindsight is always 20/20 don’t beat yourself up over past decisions. I would like to believe that you made the best decision at that time using the information available to you. If it turned out later to be a mistake the best thing is to learn from it, fix it and move on to make better choices in the future. You can handle this and I’ll be here if you have any questions. Thanks for supporting the channel.

[@RegularDudeInTraffic]

@@DiamondEdwards First of all I appreciate the reply, thank you so much for all the knowledge and I want you to know you are doing the Lord's work. I will take the knowledge and run with it. Thank you so much, and I just thank God I'm still kind of young so I still have time to get my shit together haha. Anyway keep up the great work with the channel. We all appreciate it.

[@alexdillon7572]

Thank you sir your video not only helped with making the best financial decision but also reminded me that I shouldn't walk around with my head down because I owe more than the car my worth. I was really feeling like dirt before I saw this thank you.

[@jessicafrausto3426]

According to KBB my jku 2013 is valued at 16-17k and last I checked (couple of months ago) I owed around 8k . My Jeep has been giving me headaches, huge problems and at times I feel like throwing in the towel and getting a new vehicle. I thought about getting a newer jeep model, or look for a reliable vehicle but after reading a few articles and watching your video I feel like the smartest move would be to fix whatever current mechanical issues that I have and pay it off. 😩help

[@DiamondEdwards]

If you owe 8k and it is valued at $16k why not fix what you need to in order to sell it and use the different to buy something in cash. This way you would no longer have a car payment which makes repairs not hurt as much plus could start saving for your next car. Also if your jeep is giving you a headaches why buy another. You gave them a chance move on!

[@swaggervance7038]

I’m probably $13-$14 in the hole, it’s killing me slowly. What a bad idea to get a brand new car.

[@DiamondEdwards]

What type of car did you buy? Which method are you going to use to get rid of the negative equity? My vote is always to drive it make principal payments as often as possible.

[@swaggervance7038]

Diamond Edwards Jeep Grand Cherokee, I’m keeping it until one of us goes. Have no choice in the matter the mileage is so damn high.

[@DiamondEdwards]

LOL, I'm keeping mine until the wheels fall off.

[@swaggervance7038]

I have no choice now, luckily I love it lol

[@21Dimen]

I'm in the same hole brother i'm probably closer to 20K

[@maytemondragon9895]

I made a dumb decision and co signed for a friend.... she never was on time with her payments and eventually got behind and the bank was about to repossess it and so i ended up taking the car from her and then i found out i was the primary buyer this whole time! so i kept the car and continue paying it. I really don’t like this car and am thinking about trading it in but i am -6,000k but i’m thinking of just paying off that amount like you said in that video! or just wait till i’m not upside down anymore but still i made a crazy decision!! definitely learning from that experience and much from your videos! thank you 👏🏻👏🏻

[@brandonjones9357]

I’m about 4K in the hole. Trying to find a way to get rid of this vehicle lol. Great video thanks for the tips

[@DiamondEdwards]

I hope the tips help you get out from under it. Thanks for supporting the channel!

[@solano760]

Thanks for the advice 👍, i wouldn't recommend putting money down ever as long as you do your homework and make sure your not upside-down then again the only way to do that is getting a new used car and having good credit.

[@laurenshifrin1321]

9k in the frickin hole :( Just about to start paying on the principal interest on top of my monthly payment and live with the stupid chevy. LOL #donotbuyachevy!!

[@amyh8621]

I am about $11k negative on a 2019 car. But I am making almost double my payments per month and will pay off the car about 2 years early. I plan on keeping it till the wheels fall off!

[@DiamondEdwards]

That's what's up! Just make sure that extra is going towards the principal balance and is not pushing the pay out further. YOU ARE ON FIRE🔥💪

[@TakishaAfterHoursVA]

Great info! You brought up tips I never considered.

[@DiamondEdwards]

Thanks and I hope it helps you get a better deal on your next transactions.

[@ajw148]

And i dont trade cars in. I bought it, i keep it until the wheels fall off.

[@SincCollide]

helped me alot! your very good at explaining this thank you keep up the work

[@DiamondEdwards]

Thanks, glad it helped! Stayed tuned for more good content.

[@jaredpatterson1701]

Suggestions? I have a 2018 Rav4 - owe 28k on it It's worth 14-17k Credit is 690-723 depending on credit company I am not working but want to maybe get a personal loan to cover the negative equity, trade the rav in for something worth maybe 15k. Pay that off, and possibly then sell the car privately to tackle the other loan

[@DiamondEdwards]

That's a lot of moment to end up paying 28k away. 15k (new car) +13k (negative equity) = 28k plus interest. I understand times are hard and you may be looking for a way to lower your monthly expense but you plan will cost more in the end. Interest rates are highly on personal loans and harder to be approved. I would look for ways increase income and reduce expense in other areas. Stop the bleeding! Use the principal payments to reduce your balance and once your loan balance to equal the value of the car either sell and buy a cheap car for cash or refinance your loan and get a lower interest rate and payment. Moving debt only makes you feel like you did something. You can get out of this but its not going to be as easy as it was to get into it.

[@jaredpatterson1701]

@@DiamondEdwards well I was speaking of selling my rav and basically financing the 14k negative equity even 30% interest is 18k but at least it's not 28 with a 600$ payment, I could overpay a 2-300$ loan payment easier. But I see your point of view as well. Keep up the good work educating people!

[@DiamondEdwards]

Thanks. In addition to the personal loan just check out a PLOC (person line of credit). Your credit union is probably a better option than a bank. You have a solid plan and are track. The only thing I would change is spend around 5k instead of 15k. I would to get the person loan for the negative equity plus 5k so you can get something to get around town in. Indeed this will lower your overall debt load while increasing your cash flow. Come back and let the me know how it works out! You never know how many people your story can help out. Thanks for watching!

[@kororma]

i bought my car about a year ago and the dealership told me it had no problems what so ever and was pretty much brand new like they said it had 38k miles and its at 45k miles now. and im already having problems oil leak in the engine and the brakes are also bad. im not sure how deep i went but by the looks of it 6-7k. thats why i want to trade rather than wait for it to get even worse. Thank you for the information.

[@davidalmeida8734]

Thank you so very much for this video,its been extremely helpful...i owed 14000 but I'm going to try to sell it instead of trade in

[@DiamondEdwards]

Glad it helpful, Best of luck!

[@aaron1261998]

Yes I get what you’re saying but like myself I have a car that’s unreliable and breaking down. I bought it used and haven’t had it a year. And I’m having to fix major issues on it already. So in my case I don’t think keeping this car is the best option right now.

[@omarjurado3765]

Currently sitting 12k in negative equity and working on paying the car off in 2 1/2 years with the info in your vids

[@DiamondEdwards]

That is awesome Omar. It's your money stop giving it away to the banks. They have enough money😂! Let me know once you have it paid off👊!

[@populartoks1738]

Great info except for down payment. Down payments are to get dealers commission. Your better off keeping the money and just using it for payments.

[@DiamondEdwards]

Thank but you forgot the LOL😅. Fact: Down payments reduce the amount financed which reduces the amount of interest you will pay over the life of the loan. I like 100% down that way you pay zero interest. Dealers make money in a lot of ways but down payments is not one of them.

[@evanwindom3265]

Tip 4: Buy less car. We often let our egos sell us more car than our incomes can handle, so we go for longer and longer loan terms to lower the payments, guaranteeing that we'll maximize the negative equity. Tip 5: Use the shortest possible term. Depreciation is a bear. Back when they first came out, I bought a Kia Optima as a daily commuter. MSRP was $18K. I paid $13K. Four years later, it was worth $2,400. That first generation of Kias was pretty terrible.

[@DiamondEdwards]

Tip 4: I love that one too! People don't seem to realize that car prices are inflating faster than our salaries however they sell more and more car each year. Why? Because we financial them and like you said for longer term. They don't need to pay people more as long as they pay them enough to make the payments. It's all connected people! Depreciation is the silent killer and about the only way you can lose money as fast is in the casino.

[@stuff1784]

Too late for me

[@AaliyahCache]

I owe $13,309.62 but Kelley Blue Book day my car is worth $8,828 I wanted to trade my car for a bigger vehicle I currently have 2016 Mazda 3 i Sport Hatchback

[@DiamondEdwards]

Which method from the video are you leaning towards?

[@itguru2037]

I’m 14k upside down. Should I get a personal loan for 14k and then trade it for a lease? My current loan is 84 months and the lease is 36 months. Thanks 🙏

[@zjones9876]

$0. Bought a Subaru in 2020. Made double payments for 2 years and now it's paid off. Will get a new car when technology advances to the point where it's worth it.

[@jwyzebeatz]

If I sell my car and pay off the negative equity, will I be able to finance another car immediately after this? Or do I have to wait a certain amount time to go finance another car right after?

[@gunmnky]

One thing I don't see people talking about right now is turning negative equity with a high interest rate into negative equity with a low interest rate. That is - if pre-covid you got a 6.5% rate and you have 3 - 6k negative equity. You could buy a new car, roll that into the loan, and get a 1.9 or 2.9% rate. You have to pay the loan no matter what, but now you're doing it at 1/3 or 1/2 the rate. Just be aware that you're paying that interest rate on 40 - 50k instead of 10k or whatever you still owe. The struggle for me is trying to sell a financed car for $9k when I owe 13k on it. I'd have to send the buyer's 9k in along with 4k to get the title and sign it over. Who wants to do that? Which basically means doing what you said - go to the dealer, get what you want for the trade-in and pay the old car off. It beats trying to pay $13k+ off in a lump or waiting over a year if you need a new vehicle.

[@DiamondEdwards]

The best thing anyone can do for themselves when they are in a situation as you described is STOP. Take a step back and look at there complete financial picture. Where do they want to be financial in 3 years, 5 years and 10 years and layout a detailed plan on how will get where they want to be financially. How does a car purchase fit within those goals? When it's framed this way they will make a much better decision. All of a sudden, solving a $6,000 problem with a $40-50,000 dollar solution stop making sense. Short term thinking always lead to long term problems. When I looking at the big picture, I got serious and became debt free in 3 years so that I could focus on building up my net worth and buying a car would stop being such of a big deal. My last car purchase was the last straw. In your case, the best option IMO is keep driving it until you pay down the loan or come up with the difference and sell it. The problem with negative equity is you can fold it, flip it, spin it and shine it but at the end of the day you will still PAY IT and if your not smart about it. Negative equity can GROW putting you deeper and deeper in the hole. That is why rolling negative equity is the worst possible option. Let to those people who are $10, $20 or even $30k upside down. Anyone who is going to finance a vehicle can protect themselves from negative equity by following the guidelines in this video--->kzbin.info/www/bejne/mYbSpYSKirpgmpo The protect occurs at the buy!

[@josevaldez1660]

Lots of great information thanks appreciate the clarifications , I now have a better understanding

[@DiamondEdwards]

Glad it was helpful!😀

[@pel6586]

Thanks for this video 💪🏻 definitely will like and subscribe

[@DiamondEdwards]

Awesome, thank you!

[@tonylewis9028]

I'm in the Business I would also recommend buying something with big rebates to eat up the negative equity Chevy keep big rebates

[@DiamondEdwards]

Hey Tony thanks for commenting and watching but that is the equivalent of the bad option I mentioned (rolling negative equity). If they use big rebates to cover the negative equity then they just over paid for their new car and they would be in the hole (negative) from day one. People DON'T do this! Keep your car longer, get them paid off and focus on building your net worth so you have the money to buy whatever car you want without any fuss. That is my plan!

[@jermsmusix5440]

Great video ! Very understanding and helpful thanks!

[@EmoniGray]

9000 in the hole( minus what my car is actually worth, Fiat 500) got this loan when I was 18 and alone 🥴. Now I’ve grown out of this car and I don’t know what to do. I’m Afraid of a $400-$500 monthly payment . Any tips??

[@DiamondEdwards]

Watch this video on How to Trade in a Car that is not Paid Off | MONEY $AVING TIP$ kzbin.info/www/bejne/Z3ypeqhuncSFnqc How much is the car actually worth and what is the loan balance? The difference is what your in the hole. I understand you are ready to get into a different car but the tips in the video hold true either you pay the negative off when you trade it in, or keep driving it and making payments until you can break even or you do what most do and trade in now, rolling the negative amount into you new deal. This is a bad idea on so many levels because it puts you deeper in the hole. My suggestion is to drive it awhile and use your desire to get out of it as motivation to come up with some more money so that you can have a clean break. Don’t let today’s desires become tomorrow financial burden. Remember you always have option and are in control. Be smart, be wise and crush it. You will be in another car real soon.

[@Deleted_account_101]

So, if I have a car worth 45k dollars, and owe 37k.. if I go take that to a dealership who, if they got by Kelly blue book and I get 45k, but trade it in for a 12k car, do they cut me a check for the difference after the dealership pays the 37k to the lien holder?

[@DiamondEdwards]

That is exactly how it works! The car your buying has nothing to do with it. You would be owed a check for $8,000 in that example.

[@ericmckelvey1264]

I love the way you explain this! Thank you. I'm going to watch your principle payment video. I'm in negative equity. Definitely subscribed

[@vgwrecker8436]

I loved the video, it was very informative. I'm thinking about trading in my current vehicle. Currently I owe $23,764 on it. It's pretty much brand new. I looked up the trade in value on NADA and these were the values I was given. Rough Trade in: $21,800/ Average Trade in: $23,450/ Clean Trade in: $24,800/ Clean Retail: $27,475. So going off of these values that means I no longer have negative equity and its not a bad idea to trade in correct? Or would it be best to wait and pay off more of the loan first? I'm still kind of new to buying cars. Thanks in advance.

[@DiamondEdwards]

Why do you want to trade it? Looks like you can break even so trading it in will just be starting over on new loan. No negative equity to worry about. I was in a similar situation where I could have sold my truck to the dealer and almost broke even. I ended up keeping it paid it off early and started investing my old car payment and in two years that account is over 16k and going up. This is why I will never take out another auto loan. The cost is too high!

[@sebastianlombana6144]

This is the type of financial education schools needs to teach your childrens!!!!

[@tmoneee01]

Question: is it better to put down a $5000 down payment or 0 down payment and put the $5000 towards a principal only payment, or are they the same?

[@DiamondEdwards]

They are not the same, $5000 down is the better option. It reduces the amount financed, lowers the monthly payment and the total cost of the loan. Use a loan calculator and run the numbers both ways and you will see the difference. Because of how interest in calculated, the only way they are the same is if you make the principal payment the same day as you finance the loan which is not always possible. Last thing depending on the cost of the car 5k down may be just enough to cover taxes, title, and tags meaning you didn't put much toward the car at all. Some people will tell you pay never extra on a car loan and just invest the difference. Rarely, is that person wealthy and never will a wealthy people say I finessed my auto loans and that is how I became wealthy💯

[@YoChillDawg]

i’m only about 3,000 upside down. i really want to do a trade in and get a brand new car that i know i would really really love to drive. but i think i’ll try and pay that negative equity first before going in. hopefully before this year ends!

[@junior2897]

I have a 2019 acura tlx I bought it for 32,900 in August 2019 it’s worth about 21k-23k on KBB now I want to get the 2020 tlx 35,000$ this fall what do you recommend

[@DiamondEdwards]

Since some banks will finance 120% of the purchase price a dealer may be able to make this work but the result is you end up deeper in the hole. My advice is to keep the car and get it paid off. I struggled to build my net worth when I was fighting debt. As soon as I become debt free my net worth started to take off. It's a questions of what's most important to you.

[@ZHud]

I’d say I’m 3-5k negative equity in my current truck was wanting to trade for a newer car but think I’m gonna wait it out and make extra payments. Thanks for the tips!

[@josephtran-day6281]

Hi i bought an acura with 13000 and interest is 22% and now its worth is 6000-7000 and i have $4000 saved up is it possible for me to trade in and get a new loan with better interest?

[@DiamondEdwards]

It depends. Has your credit score improved? Do you want to drive a car without payments or do you not mind payments?

[@josephtran-day6281]

Diamond Edwards yes im at 690 now before when i got that car i was 18 and my credit history is nonexistence

[@DiamondEdwards]

If the goal is to get the car paid off so you can free up your money to do other things, I would not trade in the car. Your negative equity will mostly like prevent you from refinancing the car (too much risk to the bank). I would pay the $4000 now as a principal payment and keep making extra principal payments until the balance is in line with what the car is worth. At that point I would refinance. With a 690 you won't get the best rate but I am sure you can beat 22% and a lower interest rate plus those principal payments will save you a ton!

[@DiamondEdwards]

Check out this video for tips on refinancing kzbin.info/www/bejne/e5auineInpeHfq8

[@Ladyfbby]

What if the car needs repairs & is not operable? I don’t wanna pay for a car I can drive and is too expensive to repair…I also dont kno if trading it in or selling it will make sense becus who’s gonna buy it? I’m just confused an overwhelmed atp 🤯

[@DiamondEdwards]

It's an expensive life lesson, best course of action is fix it and get it paid off. The bank DOES NOT CARE about how the car runs. They will repo it, sell for what they can come after you for the difference which you can bet will be more than it cost to fix it. What is wrong with the car? It's more than one way to attack this.

[@nileshn.8311]

Hi I have $9000 negative equity.

[@DiamondEdwards]

I hope the tips in the video helps you get rid of it fast. What type of car?

[@yunga8305]

I have a 2018 Nissan Altima and I want to trade it in for a Mercedes cls 550 I owe 16k on the Altima but they’re offering me 13k if I go put down 3k on the cls which is worth around (35k) would it be worth it ? I plan on keeping the car for good as well.

[@dylanking4670]

this was my first time buying a car. 2020 mazda Mazda3 select. the car is priced at $22,294.14 I financed my car and its at 18% interest $573.29a month and the Total price after I pay everything= $44,276.88 NADA=$23,645 AHHHHHHH!!!!!!

[@PAB1068]

These are great videos. Thanks for teaching us so much!

[@-Arkelon]

Hello I have brand new Honda Accord 2022 with 3 k miles only ! unfortunately was involved in an accident ! Honda fixed the car paid by insurance. By now I owe 30 k on this car in payments ! Should I keep paying this car at least for an year more, and trade in for a lower price car ,or pay the total right now to avoid more depreciation ? Ps : I have ways to pay off the amount owed ! Reply

[@jamalallicock4114]

I'm about $6000 in negative equity lol. Started making extra payments 3 months ago and aiming to pay this vehicle off in 2 years.

[@DiamondEdwards]

It's amazing what a few extra payments can do. Just me SURE they are being applied to the principal. Payment free in 2 yrs or less you got this 💪!

[@jamalallicock4114]

@@DiamondEdwards yes definitely. Great video and great advice!

[@tabbbetha]

Thank you 🙏🏽 very informative.

[@DiamondEdwards]

I am glad you enjoyed it!

[@megaskater900]

Im negative 8,000 but i have 4,000 to put down, should i put that towards the note or the down payment?

[@2Cor5_17]

When you say the loan payment is equal to the value of the car. Which value are you talking about? The trade in value or retail?

[@kylerose9023]

Okay I have a 2019 Toyota Camry, KBB told me its worth 23,000 and my loan is worth 26k so im 3k in the hole, So if i heard you right I would ask the bank to cut the check for the extra 3 ? or should i just come up w/ the extra 3? the trade my car in? or sell it? what do you think?

[@DiamondEdwards]

No, banks don't just cut checks for negative equity. The best move would be to cover the $3k out of pocket. If you don't then you are going to end up paying them that much more for your next vehicle causing that vehicle to be upside down and you get to pay interest on the whole amount. DON'T DO IT!

[@InnerElev8tion]

Phenomenal video bro thank you for the valuable information 🙏🏼🙏🏼🙏🏼

[@joseesparza9415]

What if you have a high interest rate and thinking if refinancing but you're also thinking of trading in within the year is it worth refinancing at that point or do you just suck up and pay current interest so you won't have so many hard inquiries thus probably affecting your chances of approval when getting the new car? What's the best move?

[@DiamondEdwards]

There is no closing cost on a auto refinance so if you can get a better rate there is no downside to refinancing. If a few hard inquiries affect your approval then your shouldn't be buying a new car. Best move? Refi, focus, get it paid off and save working towards bigger and better goals than what car you drive.

[@luispuga858]

So I just saw this video but if I try trading in my car it’s worth 16-17k but they said I’m 8,000$ negative equity I have 730 credit score but I’ve only had this car for 2 years I’ve had it co-signed , made my payments on time every month but still should I just pay more when convenient.? 20 year old asking this for help

[@DiamondEdwards]

Thanks for reaching out. YES! Pay more as often as I can. Just be sure the "MORE" is being applied towards the principal. Stay away from the car lots! There is always something to upgrade too. DON'T UPGRADE UNTIL YOU MONEY IS RIGHT! Also, never let them tell you anything. Do your owe research and find out what your car is worth, subtract that from your balance and they is your negative/positive equity. I once had a dealer tell me my truck was worth 20k on trade when it was worth every bit of 32k. I was just BS around and had no intention of trading in my truck.

[@suzettetorres1423]

Thank you so much ! I lost my job due to COVID I can afford my rent, but my car payments not so much. I’m always on the edge and I don’t like living like that lol. So im thinking on trading my car in for a used veh that is cheaper and so will the payments. I’m 5k in the hole , not so bad. If you have time, what do you think I should do

[@yashinnithomas9440]

I would consider refinancing if my credit score is higher to get a lower monthly payment. Try not to get deeper into negative equity at all costs.

[@angelinepearson8]

Excellent tips.

[@DiamondEdwards]

Glad you like them!

[@simonrutledge3171]

Diamond I'm in a quandary. I'm severely upside down on my car loan. Cars worth around 16,000, and I probably owe close to 30 k. The problem is that the car sustained front end damage because I let my son drive it. And the part needed to replace it is on backorder. I want to get rid of the car and get something that might be either four-wheel drive or all-wheel drive. When trading a car that is upside down, what's the lesser of two evils? Trading it in on a newer late model maybe even a certified pre-owned car, or a car that might be cheaper in price. That is around what the Kelley Blue book value is. Your feedback would be greatly appreciated.

[@WhatRYouAimingAt]

Here’s the situation, my Kia has been stolen 2 times now. This time right outside my apartment while I slept. I do not feel safe getting that car back and making more payments and insurance claims on it. Nobody will take the negative 8-10k in negative equity with the credit me and the signer have. I feel like I’m trapped.

[@terronlynch278]

Probably going to keep the car and add a little more towards the principle. Sucks cuz I really wanted a new car but this option made the most sense because my car is still in good condition and still drives really well. Guess I’ll just have to be patient

[@DiamondEdwards]

Smart move! Getting your car paid and building your net worth will allow you to drive any car you want in the future. Trading in a car every few years and rolling negative equity each time will keep you broke and ensure you work until you die. You're on the right and I am glad you are here. The plan is to grow together.

[@DeborahNewton-x1x]

We trade our car that we own 12,989 balance on for 13,000 but the dealer just deducted the amount from the new car instead of paying off our old car. Still have 1 day left to finalize this deal can we go back and request the amount be paid towards our old loan?

[@vionettebarreiro1859]

What an amazing video! Thanks for all the info! It is super helpful. I got a cash offer from auto trader for 22,500 for my 2019 CANYON GMC. I currently owe 30k 😒 I did not know any of this information and I wish I would have seen your video; we just bought the truck. But you helped me feel better when u said it is not a big deal. The truck is amazing and I think we can enjoy it until we make more principal payments and reduce the amount we owe to the offer given (I know this can change but at least get close to it). That way we can improve our credit scores and maybe shop for a better deal within a year or two. Thank you for giving me a better perspective!

[@DiamondEdwards]

Thank you Vionette! That is a nice truck and I say keep it pay it off and drive it for years to come. Once it is paid off reallocation that payment to your future car purchase fund so the next one you can buy with no payments. One of the biggest mistakes people are making with car purchases is getting rid of them too fast. They have gotten so expensive and most don't have the income to support swapping cars every few years. The problem is the finance industry has made it so easy to switch cars but that leaves the consumer (you and me) holding the bag and paying the penalty.

[@vionettebarreiro1859]

Diamond Edwards I will follow your advice! Ty!!!

[@marissamaxwell4578]

I owe 18k on my car and I believe Im about 5k in negative equity. I’ve had it for a year and I bought it for 20k. A Toyota Corolla 2019. My APR is high and im so upset i got myself in this hole to start with. Pay so much and its a 75month payment plan. So embarrassing. I don’t even like talking about my mistake. I was clueless when buying and i wanna slap the dealership for screwing me like that. 🥲🥲🥲

[@DiamondEdwards]

Eyes forward! You got this!

[@frankechevarria4189]

I have $52,000 negative equity on my 2019 leased vehicle that I want to get rid of. This is due to having a prior vehicle under my companies name and then having to transfer it over to my name under a new car. This brought the old company vehicles negative equity into the new lease and making my payments $1,678 a month! The vehicle a 2019 Mercedes GLS 450 with 10k miles is only worth $60k and we owe $112k on this vehicle. If there is any way I can get rid of this vehicle outside of paying off the negative equity which is not plausible I would love to hear the advice, TIA!

[@DiamondEdwards]

You have options, you always have options. Here are 3 options that come to mind: 1) Pay it off. 2) Let it get repossessed and still pay it off. 3) File bankruptcy lose the car and deal with everything that with that. Then you have buy a car for cash. I do have a question; was this a company you owned that went under or were you working for a company who gave you a car allowance and they stopped paying? My advice is this going to be a expense life lesson. If it were me knowing what I know now after paying off over $100,000 in debt and living debt free for almost two years now here is what I would do. I would sit down add up all my debt and start working a plan to pay everything off like this kzbin.info/www/bejne/m5aQnGqVnNGbb8k and use one this methods to attack your debt kzbin.info/www/bejne/qnvMfYl3ZdNmaNU. This video walks you through some awesome tool that I wish were available when I was getting out of debt kzbin.info/www/bejne/pHLYd5WvqcmskMk. Last thing, you have to stand up and say NEVER AGAIN! The person who sat down and signed up for the first loan can never do that again. The person who decide to sign this lease with a $1678/month has to understand that was not nor should it ever been a option. This way of thinking has to change. The reason is simple, you can pay off this car or worst file bankruptcy, either way you start fresh and if your thought process don't change you will find yourself back into another bad deal down road. I say that because that is what I had to do. Even though I don't have debt now, I could wake up tomorrow go $100k in debt. The only reason I don't is because my way of thinking has changed and now building wealth is atop of my priority list. No scams, no games, no shortcuts! This is a long post 112k is a long number too⌚

[@marymack4105]

Great advice. Thanks.

[@captfrostii3675]

Currently, I have no negative equity. On the payments I make on my Camaro, the dealer offered to give me more than what I owe. But I’m holding onto it. My previous vehicle though, I had about 4 thousand in negative equity. Before I even did the loan on the new car, I paid the negative equity to make it a wash.

[@captfrostii3675]

So for reference, I owed 7k on my Chevy Cruze. The dealer offered me 3k. I paid 4K down to get it down to 3k I owed, and they gave me the 3k to clear the loan. The 4K I paid was never rolled into the loan. Camaro price stayed the same.

[@Krencik68]

Hi I have a 2015 Honda Accord hybrid I owe 17000 and Kelly blue says it’s worth about 12 to 14 . I would like to get out of it and get a full gas . my credit is fair and not sure what to do. I need a work truck as my job requires it. If you can give me some advice I’d appreciate it.

[@PabloTMT99]

I have a negative equity of about 5,000 and I need a new car less miles.would you say that is a good amount? or should I wait to bring it to about 2500?

[@DiamondEdwards]

Go with the good or best option. Miles go up everyday, get the full $5000 paid off and don't bring old relationship problem into the new relationship lol!

[@miGz325]

I have a 2017 VW GTI. I owe still $20k. It's value is about $13-14k. I'm trying to trade it in for a cheaper/older suv with more mileage for around $8-10k or the same value of my trade in. I'm also planning to put down some money in the transaction (maybe $3k). I know it's not the smart move after watching your videos but is it something that you would approve? I'm just ready to move on from the GTI. I definitely learned my lesson. Your channel is definitely helpful and informative! Thank you!

[@DiamondEdwards]

Honestly, if I was in your shoes I would drive it until I saved up another $3k for $6k total then sell it. The best break is a clean break. If you get rid of it now and use your downpayment that is $3k of bad baggage going into another car deal but on a older car with more miles. It sounds like trouble. If the GTI had to go ASAP. I would get a small $6000 personal loan from the credit union pay the car off and use my $3k to buy a cheap car for $3k. You can always save up and upgrade later. What don't you like about the car? Is it the car or the payment or both?

[@miGz325]

@@DiamondEdwards the gti is great! I just think it's time to move onto something more utilitarian. Thank you so much for the advice!

[@invixon]

you are the GOAT sir!!

[@jasminemcclenney4213]

Your videos are so informative! Thank you! I currently owe about 16,000 on my 2016 car that I’ve only had for a year. I want to trade it in a get a newer car that’ll keep because it’s too small. I know this would put me upside down. I’m also eating to buy a house in July of 2021. Would getting the car now mess up my debt to income ratio for the house? Also which option would you recommend as far as trading in the car. I’m confused on which routes to take.

[@DiamondEdwards]

Depends on your income. The general rule is don't add debt if your planning to purchase a home in the near future. The last thing you want is to be approved for less house because you brought a car. Get the house then get the car. They don't care what you finance after you close on your house. The best way to trade in a car is pay all of your negative equity out of pocket never roll it into your next car deal. This would be a good video for you watch on car affordability and it will help with home affordability too and how they play together. kzbin.info/www/bejne/mYbSpYSKirpgmpo

[@transformer01able]

Bought a 2019 Nissan Sentra with a high monthly payment a month thought about trading it in a car for a cheaper car

[@Rodriiana0811]

I bought a used car 9months ago from a dealership and now it has a bloated Engine my only option is to get a new car I have paid only $2000 on the car and the car is worth $23,000 I don’t want to mess up my credit

[@DiamondEdwards]

Forget your credit don't go broke for a car! Unfortunately the bank does not care if the car runs or not so you will be on the hook for both the repairs and the loan. I would not get a new car because you will end up paying for two cars at one time. I would talk to some engine repair shops in your area. Google "engine builders near me" Hint this is not the same place that do oil changes and brakes. Get 2-3 estimate and save up the money and get car repaired. Then you can either work to pay it off fast as possible or sell it and cover the negative equity out of pocket. If you trade it in now this is what you can look forward too. They'll give you 10k for your 23k and sell you a new car at 20k but your loan will be 36k (negative equity + TTL). Oh and they is not guarantee that the new car will be problem free even if it is brand new. One year from now you will owe 34k on a car that is worth 15k. The new car will depreciated. Cost for a new engine 5k meaning you will spend 33k for a 5k problem. Don't do this! My number are just examples but the point stand.

[@Jrhymee14]

I owe 13k, cars worth about 11k. I want to trade it in on a 26k car. I also want to put a down 4K on it. What would be the outcome of this ? Would I still be upside down ?

[@DiamondEdwards]

The outcome of this is you will be upside on the next car from day one and depending on your interest rate and term length it will get worse before it gets better. The reason is 2 of your 4k down is going towards paying off the old car and the remaining 2K is not enough to cover TTL on a 26k dollar car. Also, a 26k car is going to depreciate faster than a 11k car. I would say ask yourself how does the new car price fit into your overall financial goals. Say 3-5 years from now! I don't know about you but to me car payments suck and I would rather use that money other things. Check out this video on determine how much to spend, how much to put down and how much to finance kzbin.info/www/bejne/mYbSpYSKirpgmpo

[@angelsclique005]

So once you pay the negative equity, and make the value and debt of the car equal. And trade it in. You pay for the rest of the loan, so that trade in money doesn't go to your new car, and make it cost less like a regular trade in?

[@DiamondEdwards]

That is correct. In your scenario, you break even meaning your old loan is paid in full with nothing going towards the new car. You would need to bring cash to the deal for the new cash down payment. You may find this video interesting: kzbin.info/www/bejne/mYbSpYSKirpgmpo

[@jcsan.3862]

I’m a first time buyer and decided to rush in on a deal for a 2015 Camaro and not look at other options. I’ve had it for a few months and started to regret not getting a v8 and stick shift. I’m the one making and spending the money and wanna be happy with my purchase . The dealer told me to have it for a year and bring it back to trade it in for whatever I want. Which I’m pretty sure it’s what the best option you mentioned. Any thoughts?

[@SM4YL-LA]

I currently own a 2020 Chevy Camaro that has a value of $27000. However, I still need to pay off $12800 for it. My intention is to trade it for a 2023 Cadillac CT5. Can you please advise me on what to do based on your experience?

[@atSlickBoiChris]

Sounds to me you was the green and could put that difference into the Lac. Did you get it?

[@tzvetomirmetodiev8302]

I want to part exchange my car with another one,the settlement figure on mine is 6300,the value of mine is 5700,the other vehicle I want to buy is 6500,I want to buy on finance that too,what can be the reasons they are declining

[@arianaharrison1488]

I have a 2017 Jeep I owe $16k and it’s worth $14k. I don’t see the car lasting 5+ years without major repairs ( it’s already making noises) should I trade it in and pay the remaining 2k out of pocket? Help please

[@DiamondEdwards]

Hey Ariana, are you sure you just don’t want to get a different car? What you outlined is a decent plan if you do a ton of research and buy something with a history of being reliable and the car you get has been well maintained. Also, can I suggest you look at your long term financial plans and make sure the car purchase fits.

[@Budgetforsuccess]

I’m negative by about $3,000 which I’ll be paying off my car this year. I have a 6 year loan but paying it in 2.

[@DiamondEdwards]

Faster than you know! What up with them taxes!?! lol

[@TravelNut72]

The best scenario with negative equity is to do it with a very low interest rate with a penalty free open loan. .99 percent i did it at from 11 percent at 7300 negative equity

[@DiamondEdwards]

I like that but those are hard to find. Do you mind sharing which lender you used? Did you focus on paying that loan off or did you go out and buy another car?

[@TravelNut72]

@@DiamondEdwards Honda Canada bud. the deal is not for very much longer. All our Honda CRV are built right here in Canada too.

[@Ticara106]

I’m probably like $12k - $14k in the hole because I had negative equity from another vehicle. I ended up getting a 2019 Hyundai Sonata new on the lot which made my payment 511 a month and my interest rate is 4%. I was thinking about getting a lease to get rid of the negative equity but idk anymore.

[@yashinnithomas9440]

I'm pretty much in a very similar situation. I have 10k negative equity because I leased a new car and when the lease was up I got a 2019 Hyundai sonata also which has terrible depreciation values. I recommend keeping the Sonata. No bank would approve u with that much negative equity on another car loan if u traded it in. It's not worth the hard inquiries to find out. 4% is really good, keep making the $511/mth or more.

[@DiamondEdwards]

Good advice. That's called stop the bleeding.

[@marcusjohnson9821]

I have 10,00 negative equity. My transmission went out that would cost me $10,200, multiple shops priced out. I owe 12,300 and trade in for it they gave me 2400.

[@HeyyAdrienne]

Question , I’m 11k upside down in a loan but my car engine blew out and I’m not getting quoted for less then what my car is actually worth (about 5k) to get it fixed . Don’t have the money to pay for the engine or the remaining balance of the vehicle . Now my trade in value is not looking too good either .Your video is great but I’m still confused as to what I should do . Any advice helps !!

[@DiamondEdwards]

Thank you but I don't think you will like the solutions. Is the car worth 5k fixed or as is with the blew engine? What I suggested for another subscriber that worked out well was to google "engine repair shops near me" and get another opinion. This is a shop that specializes in building engines not brakes and oil changes. A lot of shops save you need an engine when you really don't or have other options. If you don't have the money you will have to park the car while you save up. Trading now may solve your problem today but create bigger problems later. I'm guessing that 11k was built up over multiple car loans and it can get worse. I've seen $40k in negative equity! You have to stop the bleeding and face this head-on. The other options still involve paying less money but ruining your credit in the process. Get another opinion before you make any descisions.

[@HeyyAdrienne]

@@DiamondEdwards with the car in working condition I was quoted around 5k . With the engine blown out, with the places that I’ve gone to , I’m now being quoted $2000 for trade in. You’re right you’re response is the hard truth lol but your reply is appreciated. Thank you !

[@cedricnlandu8330]

2:59 I have a vehicle that I owe 25k one, and one day I decided to go trade it in, the dealership offered me 18k which means I had a negative equity of 7k. Let's say I role it over into the next loan. Will I end up paying like over 10k or more with interests?

[@i3ella553]

I have a 2017 basic Elantra.with 6k negative equity. I want a new car, I hate driving this one. It’s small and it feels like plastic. Really wanting a backup camera as well. My credit just made it to good standing, it was poor when I applied for the financing. What’s my best option if I definitely want to get rid of this car ? Currently paying 406montly

[@DiamondEdwards]

I feel you and if it was me I would use that hatred toward it to fuel my quest to get that $6k in negative equity paid off as fast as possible. If you get rid of it without paying the difference you will end up with more than $6k in negative equity just on a nicer car which you will also hate. In the meantime, maybe drop $200-$300 on a backup cam. Hit up a car audio shop or BestBuy.

[@Alex-kt6hx]

I owe about $21k on a 2017 Honda Accord but is only worth about $16k... so about $5k in negative equity. Got my newborn on the way and needing more space in a vehicle. Looking to trade in and get a truck at 55k, what do you think?

[@DiamondEdwards]

Is the Accord a two door? Is that $55k or a truck with 55k miles? How does a $55k car fit into your overall financial picture? I had a baby this year and I have F-150 and a 2 door coupe. Everyone was telling me to buy a new car. I briefly thought about spending $15-20k cash on a SUV which I quickly decided not to buy. Instead I used a good chuck of the $20k to jump start my kids 529 college fund and put a chuck of money into a UTMA just in case he wants to start a business or something. We've grow both of these account over the next 18 years. This is what I mean by "how does it fit into your overall financial picture" I would be sick if couldn't fund my children's future or my retirement because I was suck with large car payment. Also, I realized both cars don't need to "family friendly". Whoever need to carry the baby will take the truck and if needed I could put a car seat in the backseat of the coupe. Lastly, the thing I realized after paying off my F-150 last year is that car payments suck and I can't go back! Let me know if this was helpful and thanks for watching.

[@manoj89tvm]

Nice video , thanks