How To Get Out Of Your Upside Down Car (Loan-Wise Not If You Rolled It)

A twelve + year veteran of car sales tells you how to get out of your car and into a new one if you are upside down in your current car and don't have a large down payment

[@lelahill9778]

I have looked at millions of these videos, and THIS is the only one that helped and not BS me. Thank you, sir.

[@komputageek4805]

Very helpful! I knew my thinking was not off the map when I asked the dealership about a higher priced vehicle. I will look for a newer vehicle.

[@christophera5055]

Thank you!!!! This video was exactly what I needed!!!

[@brandondeboer9792]

Great topic for this video, I haven't seen any videos which cover the LTV over 100% topic and so I learned alot on this one, thank you !

[@CarDietrich]

You're welcome! That's actually why I made it, I had watched a couple other videos of how to get out of your upside down car from other people and to me they were just missing the point. If you have a large amount of inequity, its all about LTV.

[@christinafeatherstone8097]

Extremely helpful! Thank you for taking the time to explain this in simple terms. Much appreciated!

[@CarDietrich]

My pleasure thank you for watching!

[@raymondj.2351]

@@CarDietrich Good Morning to you sir, I currently own a 2016 GMC Canyon with $7,502.00 left on the balance, I'm considering on getting into a 2019 GMC Sierra Work Truck which started off at $30, 989.00 MSRP and has dropped to $26, 499.00 after discounts, my down payment will be $4, 500.00 along with $1,701.16 from my GM Card earnings and a 715 credit score, would this qualify me?, I just want to be sure..

[@CarDietrich]

Sounds solid to me, go do your deal!

[@bunderwood2000]

Very Helpful, Thanks so much!

[@MadMaxBeyondThunderBone]

Outstanding in every way. Info, examples, different situations, truth! 👍

[@CarDietrich]

Thank you very much!

[@lelahill9778]

​@CarDietrich can you help me get a car if I live in fla?????

[@sherenehilton3134]

Great information. Thank you

[@curtiserecacho1401]

Great information Thanks

[@jdcooper9]

cool video, well explained, pacing was solid. nice audio quality.

[@CarDietrich]

Glad you liked it!

[@walk2miles]

Awesome explanation. Thank you

[@CarDietrich]

You're welcome thank you for watching!

[@altalvis21]

I’m not in the market for a car yet but this was a great video!!! Subscribed

[@CarDietrich]

Thank you sir I appreciate it!

[@penvon]

Very informative 👍

[@CarDietrich]

Thank you very much :)

[@nathanielcole7803]

Definitely helpful!! Thank you for this. I’ll be bringing at least 11k with me in beg but I’ll have 3k as a deposit. Now I know what to look for.

[@CarDietrich]

Glad it was helpful!

[@andrewdonohue1853]

Buy a running and driving car for 3k. Wont be new or newer but who cares

[@luthertarversr.6041]

Yes thanks for the video need help 10 upside down in jeep Patriots 1000-1500 down I live in Chicago 400-450 max on the payment

[@BroCoolFire]

Great video

[@CarDietrich]

Thank you, but unfortunately I’m not sure if this information is still helpful given current market conditions. I will leave it up for posterity’s sake though.

[@naveedhsk1998]

Good job!!

[@CarDietrich]

Thank you!

[@AubreyThompson-zm3vq]

My hub made a bad choice and got pressured into buying me a 2023 kia soul. Now have a 4th kid on the way and need a van. We are pretty upside down. Not sure even how much right now but interest is 20%. The Kia is worth about $15k and looking to trade in for a 2010-2014 Honda Odyssey around $11k. Really just hoping we can do this trade in without raising our $630 monthly payment without much down.

[@MasterYourGreatness]

what about those who have bad credit and no down payment? I think that would be the case for a lot of people and they want to downsize perhaps.

[@CarDietrich]

That makes the situation harder, but I would still recommend the strategies I outline in this video. The domestic auto makers (Ford, Chevy, Dodge, Chrysler, etc) all have their own banks that are primarily set up to help them sell cars so their credit requirements are more relaxed than a traditional bank, so they may be able to help.

[@donnarebrown9656]

Hello, thanks for the info. I am 10K upside down on a Lexus. I have a paid for Honda and was just wanting to get rid of the Kexus but not getting good offers, any ideas?

[@CarDietrich]

If your goal is to just get rid of the Lexus and drive the Honda around, that's a tough one because you're going to have to come up with the ten grand you're upside down on the Lexus immediately upon sale to get the title released from the bank. Aside from laying out the money to get out of the Lexus, here are your options: #1: Find someone to pay $10k more for your Lexus than what its worth. Good luck with that. #2: get a personal loan for the $10k to get out of the car, but you'll certainly be paying higher interest on this loan than you are on your car loan, and you'll essentially be making a payment on a car you no longer have. #3: do a voluntary repo and give the Lexus back to the bank. This will DESTROY your credit for the next seven years minimum and I do not recommend it. #4: Since the Honda is Paid for and it sounds like you have two cars but only need one, trade the Lexus and the Honda in on something newer. The Honda will cover part or all of the inequity in the Lexus (I don't know what its worth) and you'll be down to one car and hopefully less upside down. Downside is you'll still have a car payment, but you can trade two cars in for one at a dealer. Sorry I can't be of more help, but those are what your options are. Thanks for watching!

[@1babygirlg]

Awesome video thanks! Do you know if lexus does this same thing? I'm looking to lease myself. I have good credit but will be about 16000 upside down with only a 3000 down payment and want a luxury car.

[@CarDietrich]

I don't know if Lexus leases their previous service loaners, I've never worked at a Lexus dealer. Contact your local dealer and ask, they might have some way to help you!

[@kimberleybyrne6374]

Good video! helped an idiot like me understand haha. im hoping i can try this with car dealerships here in Scotland.

[@CarDietrich]

Best of luck! I'm not sure if it works the same way in Scotland, but I can't imagine its much different. Banks are banks after all. Thank you for watching!

[@IsaiPearl]

Great Video! Down to the needy greedy! I have a 2013 Dodge Journey RT & I’m 2 years into the loan with $12k, car is worth $7k. I found the same car except it’s a 2015 which is $16,700. You think it’s a good idea to go for that car?

[@CarDietrich]

What is the benefit to upgrading to the 2015? Just a little newer with less miles? Honestly since you're just looking at the same model I'd tell you to keep the one you have now and try to pay it down more and trade it in like a year or two, assuming there is nothing major wrong with it.

[@Tiger-ep3yh]

Very helpful tips. (Quick Question) I own a Santa Fe Sport which I still owe $17,000, the car is worth $10,000 that puts me upside down with $7,000 but I wanna get a Ford F-150 truck. What are my options ? Credit score is 780.

[@CarDietrich]

I'd think you could get some pretty good rebates/discounts on a new F-150 right now, I'd contact a couple of your local dealers and see what they can do for you, they will probably have a way to get you out of the Santa Fe.

[@ArjanaGold]

This video was helpful, thank you. Quick question, I brought my first car last year (I’m 22); 2019 Camry le with the upgraded package and I want to trade it in for a 18-19 camaro. I have great credit but I’m sure my trade would be upside down since I just brought the car last year but I really want a camaro... What do you recommend?

[@CarDietrich]

Ok, what an accountant or a financial analyst would tell you is keep your Camry for another couple of years and pay the loan down so you are not upside down on it, which would be a smart thing if you can wait. As a car dog, I'd tell you to search the Chevy dealers in your area and see what 2019 Camaros they have left brand new (If any I am not an expert in the Camaro market), and if they have a new 2019 left that you would like go down and grind them to see how low they can go on the price on it. They are going to want to move those new 2019 models since its already 2020 so they might be able to make it work for you. Thanks for watching!

[@ArjanaGold]

hardworkrr12 on cars thank you !

[@KingDrewPhilip]

I put a large down payment on a car I use for Uber. Kelly blue book says its worth 15k now. In 2018 brand new it was 20k and put down 10k. So now I owe 7.8k left on a 15/16k valued car. This isn’t upside down but having more equity yes? I really didn’t want to end up upside down on the loan so the large down payment maybe prevents this. I continue to pay on time too every month. I shall not sell my already paid and with title 2008 Lexus IS 250 as that’s fully owned. Plus that’s a fun car.

[@CarDietrich]

With that sort of down payment you shouldn't be upside down on the car, just watch the miles with the Uber thing, obviously the more miles the car has the less it will be will worth, so if you're putting tons and tons of miles on it that's gonna hurt the value.

[@KingDrewPhilip]

hardworkrr12 on cars I don’t put a lot of miles as it’s part time and I have a second personal car that’s fully paid for. I only use the car for Uber and per year so far I put 16k miles on it. 2018 Corolla and it has 33k miles on it now. So I think I’m good

[@Snacks1991]

Good shit

[@CarDietrich]

Thanks for watching!

[@TheRockyTopRock]

Thanks for a great video!!! I am $22,240 in debt on a Hyundai with a blown engine. Hopefully I can save up, put in a used motor, and unload that puppy onto someone :)

[@bobbycooley9506]

Great video! I am looking to get out of an older vehicle myself. Owe $14,000 on a vehicle worth about $9-$10,000. Credit score between 600-630 with about $2500-$3000 down. Should I go for a used vehicle or year end model, looking to purchase in January. What’s the best option for me? I also belong to a credit union locally. Thanks for any insight and keep the videos and info coming.

[@CarDietrich]

Sound like between your inequity and your down payment you are close to even, so that keeps your options pretty open. As far as new vs. used, this December/January should be a great time to get into a new 2019 model car, assuming you can find one you want. Sales are slipping a bit right now so you should be able to get a great deal. I would make a list of three or four cars you would like to have that fit your budget, and start trolling your local dealers' websites and autotrader and cars dot com and all that and see what you can find. There should be a great deal out there for you, but you gotta look for it! Thanks for watching!

[@laderickharris7478]

I have a canmaro im upside down in and i need a suv just had a baby that’s crazy you explained my situation

[@CarDietrich]

Best of luck to you and congrats on your new baby!

[@andrewdonohue1853]

I have a 96 z28 long long paid off lol. It's not my only vehicle either. Anyways I have 2 kids, they fit back there just fine. Small backseat, kids fit. Just saying its plenty workanle

[@BHDread]

thanks

[@clout_chasing]

Is there a way to trade in a upside down car loan for a much cheaper and older car. And walk away with no car payment? For example: the car you're trading in is a 2018- you owe $20k and the car is valued at $10k. There's an older car on the lot a 2010 for $7k. Could you trade your newer car that upside down for the older car and walk away with no car payment?

[@CarDietrich]

Yes, in that scenario you could if you could write a check for $17,000 to cover your inequity on the old car and the cost of the used car you were buying. If you don't want a payment it would have to be a "cash deal" as we call it in the business.

[@chavov0437]

My wife and I financed a 2016 GMC Acadia -used car. At 29,000 and we still owed 24,500. This was in 2019 February by the way. The transmission went out in this January and we had 600 miles left on the warranty. Now we dont have extra money to get and extension warranty and my wife wants to trade the 3row Acadia for a new one but we're in upside down situation. What 2019 car would you recommend in order to put the negative equity and come out with a 550 monthly payment ? Are credit score went from 4it's to 621 ,mine, and my wifes 682 as in now . Would appreciate your help sir

[@CarDietrich]

Hello Ruben, if you are looking for a $550 payment, you are looking at financing about $34,000 (give or take a grand depending on interest rate), and it sounds like you are going to have some inequity in your GMC that you have now, but without knowing the details on the car I can't make a guess at how much. You might want to try going to a GMC dealer and seeing if they have some sort of owner loyalty rebates they can use to get you out of the car you have now, the extra incentives might help. Barring that, it sounds like you need to be looking for a car with a sale price in the range of $25,000 or so to try to keep the payment where you want it while also absorbing the inequity in your current car. However, that may put you right back where you are now with a vehicle that is out of warranty etc etc. I'd try the GMC dealer first and see if they have a program for you, that might be your best bet. If you trade your Acadia you have now in on another used car you may just end up right back where you started and it might not be worth it.

[@christophermoore8824]

Do you have to be approved first before doing this or can u just go to the dealer and do it

[@CarDietrich]

To get a loan on anything will require final approval from a bank or other lender. However, you don't need to be pre-approved to try these methods, the dealer can help you obtain financing, and you may be better off going through their bank, IE Ford Motor Credit or whatever. Every situation is a little bit different though.

[@RandySoWavvy]

I have a 2011 Camaro convertible I need a suv my life style changed but I owe 12k on it and it’s worth 8k now I’m having the hardest time trying to find a car in my budget without an insane amount of miles so I can finance it 🙃🤦🏾

[@MyFabien123]

Hey man great video very useful info I am currently trying to help my brother out with the situation he is in right now. He currently is 21,000 upside down on his car loan. I have no idea how he even made that possible, he currently is thinking about trying to roll that amount into a new car since this current car is not worth fixing nor does he have the money to fix it. Any suggestions?

[@CarDietrich]

$21,000 is pretty rare air as far as inequity, when it comes to that high of a number he is going to have to have some sort of money down to make it work. Over the course of my career I have seen cars with $20,000 discounts, but they are always very expensive models, think Jaguar XJL, Audi A8 W12, etc, and they are usually last years models. You could roll $20k of inequity into these cars, but you would still end up with a payment of $1,800 + per month because they are so expensive to begin with. I'm afraid your brother is going to have to save up some serious money down, or just bite the bullet, fix his current car, and pay that sucker down. Good luck to him!

[@MyFabien123]

Thank you so much for your advice!

[@mikedials4606]

My situation is I have a 2013 Chevy Cruze I owe around $5000 but it's only worth $2700 it's has some issues (Engine check light is on) I have bad credit under 500 and maybe $1000 for down payment. Can I get a new car or even a certified pre own car with Under 50K miles on it? TIA

[@CarDietrich]

I think you probably can, your inequity doesn't sound like it will be much of an issue but the credit score might be a little more of a challenge. Not sure what you're after but I would try a Chevrolet dealer first and see if they have any owner loyalty programs going that you could qualify for since you already have a Chevy. This could help you get an additional rebate on a new car, and their bank should be able to work with your FICO. The Malibus look like they have good rebates on them on the new car side, go for one with light options to keep the cost down because the bigger the loan the harder it will be to get it approved. If that fails you should be able to get a CPO car that isn't too expensive. Credit is still out there and available for you.

[@derrickab3032]

I am so stuck... I was in college last year and my high school car an 06 Chevy impala finally broke down on me so (innocently) big eyed and looking for help I ran to the dealer ship with $600 and my impala to trade in, walked away with a 2011 GMC Terrain and now it’s completely broke down and I’ve repaired It 3 times all over $300+ and still owe 10k on the car... completely stuck and don’t know what to do! I’ve went to two places and they are saying I need to put down 4-5k or pay down the vehicle to 5k... I can’t see myself wasting that money knowing the car is not running.. I don’t know what to do🤦🏾‍♀️

[@SimplyTomasTheCollection]

You too? 😕

[@marshallforeman2051]

For starters never ever buy a GM product there all junk

[@bobsugrue2703]

I have a 2011 jeep jku i owe 16000 its worth 12000 to a dealer. i need a truck to tow more, my payment is 324 thats fine with me. My credit is high 700s. what priced truck would keep my payment around the same? I would have to roll in the $4000.

[@CarDietrich]

Well something really cheap. As a rule of thumb on a 60 month finance term, every $1,000 you finance is about $20 per month. So you're looking at $80 per month just in your inequity, So you're looking for a truck like $12,000 out the door to maintain your current payment. 72 month financing can help that a little bit, but only by a grand or two.

[@BenChutes-ry8sq]

I have a 2014 hondia alanchra gt I owe 11,200.56 my car is worth about 5,000 to 8,000 and been having issues with it ever since I got it I took it back and forth to the dealership and they would not do nothing about it and I want to get out of it

[@hilariobautista8070]

HI THANK YOU NOW I GOT IT I WANT TO BUY A NEEP GLADIATOR THE PRICE IS 42,530 AND THE DEALER PRICE IS 35300 SO I WAS UPSIDE DOWN LIKE 9,000 DOLLARS PLUS TAX LETS SAY 3000 SO IF I ADD EVERYTHING 35,300 plus 9000 plus 3000 equals 47000 plus the interest rate that they want to give me i went to 4 dealers some of them they want me to 800 dollars a month for 84 months a day some 780 for 84 months 760 for 84 months tha r s too much I don't have money down but I give them what I want t I said 650 dollars for 84 months they said no they want to earn more money like 9 to 10,000 dollars more but I didn't fell for the trap I was approved by Chrysler financial and capital one but still too high can you give me some advice what will I do to talk to them thank you and God bless you and your family

[@CarDietrich]

Only advice I can give is to ask the dealers for a detailed breakdown of everything that is going into the payment, sale price, tax, registration fees, trade value, trade payoff, APR, and any additional items that you might be charged for, and then try to negotiate on specific parts of that to try to get the payment lower, or see if you are being charged for additional items like extended warranty or paint protection or something like that. Although you are financing the car for seven years so an extended warranty might not be a bad idea. Good luck!

[@magodeoz1084]

So I paying for my nissan rogue 17 and my transmission broke they don't want to fix it can I trate it

[@CarDietrich]

You can but you aren't going to get much for it unfortunately. You can try to contact Nissan and see if they will goodwill the repair the transmission for you, I don't know if they will but it doesn't hurt to ask.

[@oscarcantu3584]

Very insightful advice and never crossed my mind! Let’s say you want to trade down to a used car to save money but you are upside down in the car you currently have. You also don’t want to roll in the cost of your upside down loan into a new one for that would include the used car since it would defeat the purpose of saving money. Could you purchase a new car that absorbs your inequity then turn around and sell it?

[@CarDietrich]

Unfortunately no, if you trade in your upside down car for a new one using discounts and rebates, you will be upside down on the new car too, but the difference is you are upside down on a brand new car with a warranty. They goal would be to keep that car for a long time and pay it off, or at least pay it off enough so you're not upside down anymore. Thanks for watching!

[@oscarcantu3584]

hardworkrr12 on cars Darn! Was trying to be crafty. Thanks for the reply 😄

[@keepitexclusive4148]

i got a 2019 honda civic si four door 10,000 miles on it but i owe 31k on it the car is worth 20k can i get out it for a smaller payment possible

[@CarDietrich]

With that kind of inequity its going to be hard to get out of it into a smaller payment. On a five year loan your inequity by itself will be about $220 a month. You can get out, but it will cost you.

[@keepitexclusive4148]

What kinda car can I get that can be manual that I can still pursue KZbin with in the automotive community I've always like Dodge Challenger srt and Corvette are nice but that payment and insurance would be too high by way I'm in Jersey area what could I do ? I really want a smaller payment but let's say I wanted too do newer could I get into on without a outrageous payment or does somebody actually have too buy my car out rite

[@CarDietrich]

So your end goal is lower payment and a manual transmission? If you're looking for something to "KZbin" it with that includes a manual transmission, I wouldn't worry about getting something new-ish, because new ManTrans are so few and far between anyway. If you have the space for a second car and the inclination, I'd just suck it up and keep the Honda and buy some old beater with a stick, and try to bring it back to its former glory, or at least put the work and/or mods into it to get it into a reliable daily driver/sporty fun weekend car. I feel like the Hoovie's of the world have made the "buying cheap cars" genre of videos into a thing. But buying a car for KZbin videos is walking a fine line if you're just getting started. You don't have unlimited funds, and you have to try to buy something people will want to watch. But the thing are there are enthusiasts for everything out there. Even if you buy a clapped out Plymouth Neon somebody is gonna watch the videos, it just probably won't be as many as if you bought a clapped out EG Civic. But then the Neon is going to be way cheaper, so your return on investment may be equal. I dunno. These are the issues that keep us up at night....

[@rioguttaful]

What about when the dealership guarantee coverage for 50,000 mles if anything happen to the engine, is that in the contract and does it count after your 1 year warrenty is up???

[@CarDietrich]

If the warranty is through the actual dealership you bought the car from I don't know what to tell you, if the contracts you signed indicate that your warranty should still be valid you can contact an attorney to see what they can do for help. If the warranty is through the manufacturer contact them directly and ask for their customer service department and see if they will help you.

[@rioguttaful]

@@CarDietrich when i took out the loan to buy the car I remember the dealer telling me I'm covered for the next 50k if anything were to hppn now I got a letter saying my 1 yr warrenty is up is that in the contract ornis that different

[@CarDietrich]

Unfortunately anything the dealer told you verbally will not help you now. Go through your original contracts you signed on the car and see if you can find anything in there referencing a warranty.

[@rioguttaful]

@@CarDietrich copy that sir

[@LBoogie2k9]

I have a 2013 Honda which is worth about 8000 I owe 18000.. I actually want a dodge charger rt.. I understand the video I'm just uncertain how will the $10000 negative get paid off with the discounts?

[@CarDietrich]

The $10,000 of inequity gets absorbed into the new loan, and that what pays off your old car. You still end up paying for it. The reason why you need a car with the big discounts and rebates to pull this off is so that the bank will loan the money for it, because it makes it look like a $36,000 loan on a $36,000 car, as opposed to a $36,000 loan on a $26,000 car. You are still paying for the inequity on your old car, and the reality is you are just as upside down in the new one as well, so the trick here is to pick a car you will keep for five or six years so you can pay it down to the point you aren't upside down on it anymore.

[@LBoogie2k9]

@@CarDietrich ok got it thank you so much that really helped me a lot.. not really good with this car stuff but now I understand it

[@CarDietrich]

My pleasure, best of luck to you!

[@sahilsunilpatel3676]

Need advise: I am 10000 cad upside down on my current daily driver. I want to lease a 2021 Subaru Outback convenience for 24 month. Please suggest

[@CarDietrich]

My best suggestion in that situation is you're going to need to get a huge cash down payment. I don't know how Subaru Motors Finance works in Canada, but I am very familiar with how it works in the USA and I imagine it isn't that different. You can't bury that much inequity on a Subaru lease, and new Outbacks don't have the kind of discounts you would need to get anywhere close to covering $10k in inequity. Also in the US a 36 month lease would give you a much lower payment than a 24 month lease. It is possible that might be different in Canada, but I sort of doubt it.

[@sahilsunilpatel3676]

@@CarDietrich how many dollars approximately?

[@sahilsunilpatel3676]

@@CarDietrich can you somehow help me financially atleast so that I get this vehicle ..

[@LifeTripped]

2014 Toyota Prius Gen 3 203,000+ miles Check engine light on (head gasket) $18,800 left on loan Its worth $3000 All extended warranties expired, couldnt renew it. Still have GAP. Ive gone to dealerships and they can get me into a newer but more expensive car to cover the negative equity but the newer car has to be more than $30,000 and with that the new payments would be around $1100. Needless to say, Im not doing that. Any options to walk away from it?

[@CarDietrich]

If you have full coverage insurance on it, your insurance company may declare it a total loss based on the cost of mechanical repairs for the head gasket. GAP would cover the balance. Same story if the car was in an accident and declared a total loss. Realistically the only other option is you buy another car without trading the Prius in, make sure that loan is approved and funded and as solid as dry concrete, and do a voluntary repossession on the Prius. This is not a great option because it will mess up your credit, but since you would have another car loan already open it would get better over time. This should be considered an option of last resort, but an option nonetheless

[@LifeTripped]

@@CarDietrich Hey thanks for replying. Yes I have full coverage,.paying up the ass for it. I already called my insurance about it and they said only if the car got totaled in an accident. They won't total it for mechanical issues. The only way I'm trying to keep up on the $535 payments is by paying daily thru their app. I was thinking of getting a very cheap car without another loan before doing a voluntary repo, if that's what it came down too. I'm not worried about my credit. It's trashed anyways but yet I can still buy new cars, go figure lol

[@CarDietrich]

I wish you the best of luck, that’s a tough situation

[@LifeTripped]

@@CarDietrich Yup.. thanks

[@nivlem131303]

what about trading it to a way older car just to help the negative equity? lets say around 200-2005 cars.. would that be a big help? thanks

[@CarDietrich]

Unfortunately this probably would not work because of the loan to value ratio, you cannot bury a large amount of inequity (say $5,000 +) into a car loan for a car that is only worth $5,000 or so because a bank will not loan 200% of the car's value.

[@nivlem131303]

@@CarDietrich thanks for your reply.. so my options are its either go for a brand new or keep the car?

[@CarDietrich]

At this point brand new would probably be the best option, there are some pretty aggressive deals out there right now because of the Corona crisis. Or keep it and pay it down more

[@nivlem131303]

​@@CarDietrich thanks! i really appreciate your response..

[@quianareed7562]

I have a 2013 honda CRV and owe 14,000 and I believe the dealer will only give me about 6,000 because I was accident two years ago. The car has about 165,000 and I commute in the bay area. I desperately need a new car because of my long commute. What should so frustrated and yes I rolled in a car that was upside. I feel so stuck and really don't know what do. Please help

[@CarDietrich]

Well best advice I can give is already in the video, find something with big discounts and rebates on it to absorb the inequity. It might be worth checking with a Honda dealer to see if they have some sort of owner loyalty program to help you get out of it too. I don't know that they do but its worth a shot

[@daveshangar6820]

I am by no means any expert and I have never sold cars in my life so I am just learning. You talk about burying the inequity that you have in one car into a new car where you're getting a discount that matches the inequity but it appears to me that when you buy this new vehicle, a few years down the road aren't we back in the same boat that we were in to begin with because now the car has depreciated? Aren't we once again upside down and not really accomplishing anything other than buying a vehicle and allowing someone to rip money out of our pockets by way of interest every month? Correct me if I'm wrong.

[@CarDietrich]

You are not wrong, but its a matter of perspective. I go over the reasons why people are upside down at the beginning of the video. If a person just trades their car in all the time just because they like getting new cars or they want something different, that's kind of their problem. I more made this video for the person who has a broken car they can't afford to fix right now and they still owe money on it, or people who had a lifestyle change and need a new car for that reason but they are upside down. If this is the case the goal should be to get a new car and keep it long enough to pay it off so you're out of the cycle.

[@daveshangar6820]

@@CarDietrich Ok Thx.

[@justswitched8841]

I owe 6500 on my 08 gxp. I think it’s work like 2500-3000k. I’ve had it 3 years my credit score didn’t go up much it’s like 580 or 600. Do you think I could trade it in on a Dodge Charger rt that’s 26k?

[@CarDietrich]

I think you've got a shot. Go down to your local Dodge dealer and see what they can do for you! If it works, great, if not, hey you tried.

[@coolmodee]

@@CarDietrich honestly I'll probably just end up keeping it. It's kind of a rare car and I really don't want to get into more payments. I might try but if they're talking astronomical payments I'm just gonna keep it and pay it off.

[@CarDietrich]

Not a bad plan either. Pay it off get your credit score up and get a better payment on something else later on

[@coolmodee]

@Bussinyagirl Cheeks I'm about to check out some Mustangs gt next week. I was offered refinancing or to trade my car in. I gotta do my interest is sky high. I hope it works out.

[@applejack2911]

The only problem I see is getting a salesman and or dealership to go along with it,..because what's in it for them, they're there to make money, not help you.

[@CarDietrich]

Well in normal times (this video was obviously made before the pandemic/chip shortage blah blah blah) a salesperson and a dealership would go along with this, because the salesperson will earn some sort of commission, and the dealership will move some inventory they want to move. The Manufacturer rebates don't come out of the store's pocket. For any number of reasons this video is currently outdated, but it is possible that if things return to "normal" it may become applicable again so I'll leave it up.

[@sergestudios-games1831]

My finance company won’t accept payments to the principal, they’re putting so many road blocks, they’ve refunded over half of what we owed, can’t afford insurance, trying to pay it off, I don’t know what do

[@CarDietrich]

If you want to pay it off faster just send a larger monthly payment, it all goes to the same place and will pay off your principal faster. That's what I do with my 2013 VW. Don't bother making a separate payment

[@sergestudios-games1831]

hardworkrr12 on cars they won’t accept anything above the minimum

[@briankeithnull194]

I have a 2012 Jaguar XF Supercharged V8 Portfolio Edition. It' has now blown the head gasket and will cost 8-10 thousand dollars for repairs. I'm uside down by about $3,000 hopefully I can get out of this horrible car very soon. My advice for people is to not buy anything Jaguar or Land Rover. They are horrible cars now especially since Tata and Chery Motors have bought them. This is the worst car I've ever owned in my life. And I once had a AMC Gremlin!

[@CarDietrich]

Sorry to hear about your predicament Brian. Where is the car located now? Jag dealer?

[@MeToo-py1tq]

I voluntarily surrendered my vehicle years ago and there is no derogatory reporting or anything like that being reported. Is this normal?

[@CarDietrich]

Actually no, normally a voluntary surrender goes on your credit report as a repossession. You got lucky on that one!

[@MeToo-py1tq]

hardworkrr12 on cars Now my BK is over 7 years old and that’s still showing. I don’t know if showing on my report is hurting my score but I thought it shouldn’t even be there. Do I need to get it removed completely? Thank you

[@SammySosa-cafepilon]

I have a 2018 mitsubishi mirage in 2019 bought new owe 14,000 its probably worth 7000 is it possible to trade in? Its been a year already.

[@CarDietrich]

Probably if you follow the tips in the video. Its the last weekend of the year if you want to do it now is a great time everybody loses their minds right now. I've worked 24.5 hours in the last two days and I'm scheduled for 46 more in the next four days LOL

[@SammySosa-cafepilon]

@@CarDietrich I just closed mommy house I bought yesterday how long should I wait before I can trade in the vehicle and buy another one

[@CarDietrich]

If escrow is closed you should be good to do it now.

[@SammySosa-cafepilon]

@@CarDietrich went to a dealer they said my score was 670 and i was to upside down to do anything

[@Dapowerranger]

Need advice: I have 2015 Nissan versa valued at 3500 from carmax but I owe about 7700 on it. I was looking into getting into camaro ss (2013 and up) I have been approved for 18,500 though Arrowhead credit union. What can I do?

[@CarDietrich]

Sounds like you need to find a Camaro for about $13,500 out the door (so your loan balance will cover your inequity), or get a bigger loan, or some down payment. Or maybe shop your Versa around to see if you can get a better number on it.

[@Dapowerranger]

@@CarDietrich I have about 1200 for a down payment so far what do you think I should save up to in order for it to work out for me

[@CarDietrich]

Well the closer to even you are in your Nissan the easier it will be, but if I were you I'd wait a little bit right now, the car market is tanking at the moment and prices are about to drop, and interest rates might drop lower too because of what the Federal Reserve is doing. Might want to wait and see what shakes out in the next month or so

[@Dapowerranger]

@@CarDietrich will do thank you!

[@CarDietrich]

You're welcome thanks for watching!

[@isweatglitter5809]

I haven’t seen a Saab in so long.

[@CarDietrich]

kzbin.info/www/bejne/lZ6XpnWen85noMU

[@sashaj6104]

I need help. I have a brand new GLC 4matic that I got in June. I hate it! I owe 40k on it. I want to trade for a lease or loan on a C43. How can I make this happen without having to pay thousands down?

[@CarDietrich]

Best advice I can give you is contact your dealer and see if they have some sort of owner loyalty program to get you out of your GLC and into the C43. It's quite probable that you are at a point now where nothing can be done without thousands down, but keep trying, and focus on the last few days of the month or the last week of the year. You might catch them in a moment of weakness where they need to move a few more units before the end of the month/year, and they'll drop their pants on a C43 and make it happen. Maybe.

[@sashaj6104]

hardworkrr12 on cars thank you so much!

[@CarDietrich]

You're welcome, good luck!

[@joycegains1267]

Hire *hiltoecyberservices,com* or reach out to them on whatssaapp for better response +1(818))--863--6593 they got the best affordable service

[@eaglesfan9800]

@@sashaj6104 Im in a similar situation with my 15 c300 amg sport. Trying to get out of it asap into something that holds value better and something I plan on keeping. 17 and up E43 or E400 fully loaded.

[@swagdragon937]

Bought a car, too much monthly, wasn't thinking straight, dont want it too, how do I get something cheaper. It's only been a week, will they take it back. God damnit

[@CarDietrich]

You can contact the dealer and tell them you want to return it, and they'll probably tell you to pound sand. If you want to play hardball with them you can tell them you're not going to make the first payment on the loan, which means the car will get repo'd almost immediately and the bank may hold the dealer responsible for the loan. HOWEVER, this will mess up your credit because it will be a repossession on there and lower your credit score considerably, so proceed with caution.

[@davantegates7011]

I need advice.. I have a 2011 chevy Camaro SS.It was 172k miles. Its worth 6k if that; I owe 11.7k on it. Recently, I wrecked it with only having liability insurance so my credit union has filed a claim through their insurance. Can you tell me what should I expect next and also what should I do when its time to trade, sell, or roll over if that's a option. Thanks :)

[@CarDietrich]

So when you say wrecked it, I assume you mean it is a total loss and/or requires expensive repairs that you are unable to pay for out of pocket? Honestly I don't know what would happen here, you are still responsible for the loan to your Credit Union so you should keep making the payments for now. When you say they filed a claim through their insurance, are they having the car fixed for you?

[@davantegates7011]

@@CarDietrich Correct. It has a lot of expensive repairs. I called to inform them that it had expensive repairs and they let me know that they would have their adjuster from their insurance come out to get a estimate. Im assuming they have insurance on my car incase something like this happened.

[@CarDietrich]

Well right now what I would tell you to do is have clear communication with your credit union so you know what is happening with you Camaro, if it is actually getting fixed, and what you are going to be responsible for as far as the cost of getting it fixed. Also keep making your payments because despite the accident you are still responsible for the car at this point. Once it has been repaired you can deal with trying to trade it in if that is what you want to do. That is going to be a whole different issue though, focus on getting it fixed first.

[@davantegates7011]

@@CarDietrich I gotcha. I really appreciate it !

[@CarDietrich]

No problem best of luck!

[@wezzkeion7593]

So basically multiple 1.3 by the MSRP not the discount price the dealership has it listed for?

[@CarDietrich]

As a basic rule of thumb yes, but it depends on the bank and it depends on your credit. Some banks will base loan to value on dealer invoice not MSRP, and if you do not have tier one credit you may not get a 130% advance, so results can vary based on the situation. If you're doing your own calculations based on this formula keep these possible variations in mind, and also don't forget about sales tax and registration that would be due on the purchase of a new car in your local area.

[@wezzkeion7593]

@@CarDietrich thanks i wanted to see where i would stand. I need a bigger truck to start my business dealership told me i have equity in my truck i had for only 1yr . But they say anything just to bring you in

[@CarDietrich]

Well right now is a really weird time, the supply of new cars is relatively low due to Corona Virus related production issues so used cars have gone up in value. That's good news for your trade value because a dealer may pay more for it, but its bad news for the new car/truck selection because they may not have as many on the lot.

[@wezzkeion7593]

@@CarDietrich great info thanks alot i appreciate it

[@nathaniellafarge6677]

Gapped the chally like nothing 💀

[@Tyler-ev3gk]

I have a 2012 lancer and trade in value says 2440 but i owe 7500. I wanna trade it in and get a pontiac g8 for around 15k. how should i go about this my credit is around 630

[@CarDietrich]

Well with used cars its a little bit more difficult because every used car is unique as far as what it is being sold for and what the wholesale lending value is, which is what banks base Loan To Value on for used cars. If you can join a credit union and get a loan pre-approved from them that might help you get a little more LTV, but all I can really say is go out there and try to make it happen. Get pre-approved from a credit union and/or try to get financing from the dealer that has the G8 you want. Like I said, used cars are a little harder to give advice on because they are all unique. Also, I guess you're gonna have to change your user name on KZbin!

[@Tyler-ev3gk]

@@CarDietrich true on the name lol. I just know the g8 in my range is gonna be about 14k to get a low mile one. I just feel like the g8 is one car that wont go down in value to much. I make 34k a year for 3 years now. Also my current interest rate is 25.19% and my insurance on the g8 full coverage is $100 cheaper.

[@Tyler-ev3gk]

also have 1 year of good payments on my current loan

[@CarDietrich]

Well hopefully the one year of payments helped your credit score a little and you can get a lower APR on the next one, but like I said the only way you'll know is to try, no set rules on used cars unfortunately.

[@Tyler-ev3gk]

@@CarDietrich what about a newer car like a 2017 something. Better chances?

[@cristnas143]

So basically you're saying... Find an American car that has a high MSRP, but has some rebates, which the rebates equal the amount of the negative equity of the underwater car loan? And also what if you have a car that is non drivable. Ex... Complete engine failure ...paying car note, and car insurance.... Paying for a car that I haven't drove for 4 months... Please I need advice ..

[@CarDietrich]

Well find A car with a relatively high MSRP and a large amount of rebates coming back. These cars do typically come from American manufacturers. Where is the vehicle with the engine failure located? You can still trade it in, but a dealer is going to give you very little for it, so you need to kind of work the deal out first and have it towed to wherever you are going to trade it in. Be upfront with them about the condition of the vehicle obviously. The other option you have if you don't have the cash in hand to pay for a new engine is find a repair shop that will extended credit for the repair. I think Aamco might do this, but I don't know if they replace engines. The downside here is you will technically have two car notes (one for the car itself and one for the repair) but its an option to get it running again. Sorry about your situation, that's a tough one!

[@cristnas143]

@@CarDietrich it's located in PA... Don't mind towing to where I need to that's not a problem. Oh yes. I have been totally honest... Also, do you know is there a way to prove that a shop caused the engine failure, or dispute it some how... Car went in for basic repair, returned to me with EF... Don't make any sense. Also, do you think your idea will work with less than stellar credit?

[@cristnas143]

@@CarDietrich and thank you so much... The most helpful/honest info I've gotten, with being totally honest about this stressful situation. Wouldn't wish this on anyone. Appreciate you.

[@CarDietrich]

No problem, happy to help. Yes, this could still work with less than stellar credit. One reason why I recommend looking at the American automakers is because they have their own finance companies that are specifically set up to move cars, so they can be more helpful in funding deals in situations like this (upside down, less than stellar credit, etc). As far as the shop that worked on your car, I don't know what you have in PA but where I live in California we have something called the Bureau of Automotive Repair (BAR) where you can file complaints against auto repair shops if they have done you wrong. Maybe see if PA has something similar to this and file a complaint with them. I don't know if it will get your engine fixed (I've never actually dealt with BAR, I just know they exist) but it's worth a shot. Best of luck and let me know if you have any other questions!

[@1lesavage]

I have 7k in negative equity on a 15 subaru wrx and im looking into getting a camaro ss 1le with low miles which they go for 36-39k. Both cars hold their value but with everything out the door i would be loaning 41-44k. Which would be around 690-730 a month for me. Should i try to get the best value for the camaro first and then bring up my trade in to try and lower my negative equity? Do you think they’ll work with me to sell me this car for below 40k after trade in and fees?

[@CarDietrich]

I know there are lots of websites online telling you "HOW TO GET THE BEST DEAL ON A CAR" that propose keeping your trade in a secret from the dealer until the very end. Personally I do not recommend that to people, but I especially do not recommend that at all if someone is upside down. In a strange way being $7,000 upside down in your trade is almost a bargaining chip for you, because the dealer knows immediately that they are going to have to be as aggressive as possible both with what they will sell their car for and how much they can give you for your trade to make the Loan To Value equation work for the bank. I cannot say what a dealer will do for you on the Camaro you want, but don't keep your negative equity a dirty little secret from them. It won't help any of you in the long run.

[@se753]

What if I wrecked it and still owe on it and didn't have insurance at the time of the accident

[@CarDietrich]

No easy ways out of that one, unless the car is still drivable and someone will take it in trade and you bury the inequity in something else. Good luck

[@se753]

@@CarDietrich thanks I've been debating bankruptcy or insurance fraud 🤦‍♂️

[@CarDietrich]

Bankruptcy is less risky. You can rebuild your credit.

[@johnathanellis9010]

Thanks for the video. Getting a unexpected divorce so I’m trying to bury a 20k on a 19 tundra that needs 2k in bodywork

[@blackanimegeek2888]

What if you trade down with a car upside down? Right now my car is $21,000 upside down and My trade in is worth $11,000-13,000. The car I’m looking at purchasing is $11,000. What will happen with this kind of trade in deal?

[@CarDietrich]

Ok I'm slightly confused, do you mean that you owe $21,000 on your current car but it is only worth between $11k-$13k?

[@blackanimegeek2888]

Hard Workrr12 yes. But I’m looking to trade down my car.

[@freedomadventurer8454]

I am actually in the same situation. Hopefully there is hope.

[@CarDietrich]

So your problem here is loan to value. Let's just say worst case you own $21k and your car is worth $11k. That means you have $10,000 that will be tacked on to the new loan if you are putting no money down. Now if you are trying to get an $11,000 car that probably isn't going to work because the bank isn't going to loan you $21,000 + tax and license on a car that is only worth $11k. This is too much risk for a bank because if you default on your loan the asset that they can recover (the car) will in no way cover what the unpaid balance of the loan is.

[@CarDietrich]

Now, with all that being said there is a potential hack here. I didn't go over used cars in my video because they are more complicated than new ones because every used car is unique. With a brand new car the value for the vehicle used to calculate the "loan to value" I referenced above is either the invoice or the MSRP depending on the bank. With used cars, the value the banks use to calculate loan to value is called Wholesale Lending, and this is typically provided by third party companies. I'm in California and here all the banks seem to use Kelly Blue Book wholesale, I've heard this may be different in other areas for whatever reason. IF you could find a car where the sale price was significantly lower than wholesale lending, you might be able to make this work. For example, if the sale price on the vehicle was $11k and the kbb wholesale was $19,500, you would be close to getting done what you want to get done. HOWEVER, this is going to be extremely difficult to find. I cannot give you any advice on where to find it.

[@richierecaro3544]

Does carmax have those discounts

[@CarDietrich]

No CarMax has "No Haggle" pricing (AKA no discounts) and their prices are pretty high. If you have bad credit they may still be worth a look because they can get most people approved, but if you're upside down it might be really hard to get a car there based on Loan to Value, unless you have $$$ down

[@richierecaro3544]

Thanks for your response I will work on my credit and see what I can do

[@hilorymclean8128]

I own 22,000 and my car is worth 9,000. I need to get out of this 😬😬😬

[@Quecozy]

What’d you do ?

[@005connect9]

“Let’s go look at some fords” let’s NOT lol and I unfortunately drive a Ford

[@CarDietrich]

First On Race Day! Honestly you can look at whatever type of car you like, I'm just showing what you need to look for to get the loan to value ratio in line with the bank to trade in a car you're upside down on with minimal or no down payment. It just so happens that with some brands its easier to do than others.

[@bartonarchuleta204]

If Scotty Kilmer ever saw this he’d have an aneurism

[@CarDietrich]

Well, I would almost certainly be heartbroken if anything bad ever happened to Scotty Kilmer.

[@bartonarchuleta204]

@@CarDietrich lol it’s the lack of Toyota ball fanning 😂

[@CarDietrich]

Well unfortunately if you're ten grand upside down on a car loan you can't exactly trade it in for a 1993 Celica with 280,000 miles on it.

[@bartonarchuleta204]

😂😂

[@MeToo-py1tq]

Don’t like American cars not even those disguised as Japanese cars

[@adlenenelson9656]

I owe 8,000 and the car is worth 13K . It’s a Kia Forte 2013 and honestly I’m so upset I even let myself get that car 😭 now I’m trying to find options on how to get out of this messs

[@carlosalvarez2295]

Sell it and make 5k? Or did you mean you owe 13k and it’s worth 8k?

[@fallguy4209]

Bmw lol talk about really upside down

[@CarDietrich]

True but if its a lease the pain is over in three years

[@bebe4235]

@@CarDietrich yeah right! Leases are probably worse than buying. With a lease, if you go over the miles (which you will, a lot) you owe them money, lots of money!!!

[@CarDietrich]

I've leased four Subarus. Went over mileage once, got a bill for $256 because I was like 1,500 miles over. My current lease is up in two months and I am 11,000 miles below where I'm supposed to be at the end. Not everybody goes over miles.

[@666myname666]

Your hair is upside mate. go shave your head.