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Tradeing in Cars?

My DH lost his job and we had to sell one of his cars awhile back for money. He found a job, but only making 1/2 of what he was. Well, we have been stuck in a car payment that we cannot get out of that is $487 a month! Its been fine with 1 car with me being a SAHM, but now I need to go back to work full time and we cannot afford another car payment. Is it possible to trade in that 1 expensive car for 2 cheap ones, so both the car payments will equal what we pay now for just the 1?

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Asked by Anonymous at 6:29 PM on May. 14, 2009 in Money & Work

Answers (2)
  • The problem with this is you might get yourself in an "upside down" loan situation. The two cars would actually have to be cheaper than the total payoff of the "one" car. If you trade it in for two cars, I doubt the auto place will give you what you need to payoff the "one" car. So, you would then carry that balance into a new loan, plus the loan for the two cars.

    I understand what you are thinking of here. I would think the same way, but talk to the finance company. It doesn't work the way we think it should work. This is how I got myself into trouble. I went from a nice car to a cheaper car because I thought I would save money, but then I wound up owning more than the cheaper car was worth. It turned into a nightmare situation.

    Answer by m-avi at 12:29 AM on May. 15, 2009

  • You can not trade, b/c you have negative equity. You'll get about half of what you owe as a trade in. And you wont be able to purchase another car b/c he's been out of work or trading jobs and the bank isnt going to loan you the money. You can rarely trade in for a cheaper car payment. I would save up as much as possible and just buy a junk car to scoot around town. Like $1000 car.

    Answer by forevermom75 at 4:17 PM on May. 16, 2009

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