Anyone purchase with a negative trade?

[93civej1]

I know this is a silly topic, especially during this time the world is in currently.
I have a 4runner currently, but am finding out that I could really use a truck bed at this time. The gladiator has been on my list.
My wife and I used to have a JKUR that we only had a few months, and I loved that thing while we had it. Now we are needing a truck bed again and would love to have a jeep again at the same time.
Sure I could get a trailer, or borrow a friends truck bed, but meh.

i am currently upside a little on my 4runner due to a dang BMW i purched a few years back. (Dont ever do that)

My job should not be affected by this virus stuff, I work in IT in a medical field, and I am also remote. I dont really see my company being too affected by the stuff going on.

Has anyone traded in a vehicle with negative equity on a new or used gladiator? How did it work out for you in the end? Keep the bashing to yourselves, its a legit question.

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[KVJ]

You could try contacting Carvona and see what they will give you for it. My friend did it, he said it was easy. Then you will have an idea what you are getting into and have an option. Good luck.

 

[Jefe1018]

Sure, the dealer will find you a loan and be more than happy to do it if your credit is “high” enough. I came close to doing this in 2013 on a used 2008 Ram 1500 when I realized sports cars were cool, but couldn’t do mountain things. I am glad I didn’t.

In order to get a “comfortable” payment I would have ended up restarting a 72 month term over and paying $37,000 for a truck that was worth maybe, $18,000 at the time and my negative equity was only about $3,000. Keep in mind, the truck is now worth around $8,000.

In your case however, I’d not even try it, look into a trailer.

Pay off as much debt as possible, get the JT when you can pay it in cash or if you must finance it, no more than 36 months with at least 20% down, not including taxes and fees.

 

[DougM55]

I’ve done so recently. I’m not advocating it as a wise financial decision though!

I had a Camaro SS with negative equity of about $6K. I found a nice Sport S with hardtop and negotiated a deal to lease for 5 years for around $500/month I think the residual is ~$26K

Seems like a good way to eat up some negative equity and still get into a Gladiator. I was dead set against a leases until I thought through all the options and ran the numbers.

 

[maxpower220]

I don't advocate debt at all. You should look at a lease. Sounds like you trade often. Lease could be your faster way to get out of negative equity if you must get a different car. Otherwise, pay off you current suv and don't be a slave to dealers.

 

[93civej1]

I’ve done so recently. I’m not advocating it as a wise financial decision though!

I had a Camaro SS with negative equity of about $6K. I found a nice Sport S with hardtop and negotiated a deal to lease for 5 years for around $500/month I think the residual is ~$26K

Seems like a good way to eat up some negative equity and still get into a Gladiator. I was dead set against a leases until I thought through all the options and ran the numbers.

I need to learn about leases. These days I am now working 100% remote, where most of my driving is now to and from a music gig, or running an errand here and there.

 

[93civej1]

I don't advocate debt at all. You should look at a lease. Sounds like you trade often. Lease could be your faster way to get out of negative equity if you must get a different car. Otherwise, pay off you current suv and don't be a slave to dealers.

Where can I find out about this, and learn more?

 

[Mr._Bill]

Where can I find out about this, and learn more?

A lease is just a long term rental. The dealer already has all the numbers. They are selling the car to the leasing company, and then you make monthly payments for the privilege of driving it. The difference between a lease and rental is you have to treat the vehicle like you own it, even though you don't, and are responsible for all the associated costs (insurance, registration, service). There's little negotiation available for leasing. They know what the vehicle will be worth at the end of the lease, and you are paying for the loss in value over time. Negative equity can be added in to the transaction, it just increases your monthly payment.

Leases are best for those with a business that has enough income, and can justify the expense. I would also suggest them for those that always want to be driving a new vehicle. For everyone else, I would recommend negotiating the best deal possible, and keeping the vehicle for as long as possible. I used to buy and trade every three years. The last truck I kept for 14 years, and then traded it in on a new Gladiator.

 

[ajn507]

Make sure whatever you do is get GAP coverage when you roll negative equity into a new loan.

 

[Jeepnoob34]

Make sure whatever you do is get GAP coverage when you roll negative equity into a new loan.

I was gonna say this. Gap insurance is a must if you have negative equity. Years ago, I traded a Can-Am Spyder in on a Yamaha Bolt. Luckily, I got the gap insurance. My nephew ended up totaling the bike and thankfully he was fine. GAP insurance kicked in and erased my negative equity completely. I will never go negative again.

 

[12BNNT]

My 17 JK was upside down but I cashed in on below invoice deal saving over 6k on the JTR plus the dealer I have a history with gave me about 1200 more than others on my JK. In the end the little bit of negative basically ate up some of that discount but still ended up below sticker on the price of the truck so I figured it came out okay. Better than those that bought at above msrp. Did make sure to add gap insurance. Maybe could have sold my JK outright for more and had a lower payment but for me it wasn’t worth the hassle. Plan on keeping this one for years to come so figure I’ll owe less than it’s worth by the time I trade it in by making larger than needed payments (I round the minimum payment up a little when paying my payment)

In the end its what your happy with and what you can handle financially. Looked at a lease but the loan payment was only $20 more a month and I don’t have to worry about mileage or mods or every little trail scratch

 

[Hootbro]

Hard to respond to negative equity topics and not come off preachy. By your own admission, trading into a Gladiator will be a second roll over of negative equity. Sounds like you are satisfying a "want" vs. a need because there are way other cheaper options for getting into a pickup with a bed than buy a over priced Gladiator to get the bed.

I have been in your shoes when I was way younger. At some point, you got to break that cycle and either man up and pay down the negative equity or even better yet, pay it off entirely until you have enough positive equity before moving into the next vehicle.

 

[12BNNT]

Hard to respond to negative equity topics and not come off preachy. By your own admission, trading into a Gladiator will be a second roll over of negative equity. Sounds like you are satisfying a "want" vs. a need because there are way other cheaper options for getting into a pickup with a bed than buy a over priced Gladiator to get the bed.

I have been in your shoes when I was way younger. At some point, you got to break that cycle and either man up and pay down the negative equity or even better yet, pay it off entirely until you have enough positive equity before moving into the next vehicle.

Like he said, if you don’t “need” a JT and your not too far in the negative, wait a while and pay some extra on the payments until you’ve got yourself to the point of being worth more than you owe. If your carrying a lot of negative, you may have to deal with it a while and just plan out when you’ll be close enough to 0 to make a purchase. Myself, I needed the towing but wanted to keep the Jeep off-road abilities. Could have got gotten a Ranger, Colorado or even a lower trim full size for less but “for me” it was worth the extra for the do it all JT. Loved my Jeep but needed more towing than the 2dr could provide. Everyone is different. My negative only came out to $1200 and the discounts far outweighed that. I went by to look at a Max Tow they had and got a good deal on a rubi that had exactly what I would have ordered. Could have waited 6 or so months and been at 0 negative (paying extra like I do) but decided to go ahead and do the deal. That was my call. No one else’s. Just as this is your call. Not mine. Just be honest with yourself, if you have any doubts or think you may regret carrying a bunch of negative and owing far more than the truck is worth, you may want to wait until you can be happy with the deal. If your not happy with the deal you won’t be happy with the truck. Plus if you get it and have any regret, you’ll have to live with that regret for 4 years or more until you’re above water again and that’ll make for a long 4 years.
Previous vehicles I waited until positive equity before trading. This one I didn’t but was only a little in negative and would have taken the negative regardless of which new truck I bought as long as the incentives or discounts covered the negative. I won’t borrow more than the sticker price! That’s a recipe for failure.

 

[TennesseePA]

Like he said, if you don’t “need” a JT and your not too far in the negative, wait a while and pay some extra on the payments until you’ve got yourself to the point of being worth more than you owe. If your carrying a lot of negative, you may have to deal with it a while and just plan out when you’ll be close enough to 0 to make a purchase. Myself, I needed the towing but wanted to keep the Jeep off-road abilities. Could have got gotten a Ranger, Colorado or even a lower trim full size for less but “for me” it was worth the extra for the do it all JT. Loved my Jeep but needed more towing than the 2dr could provide. Everyone is different. My negative only came out to $1200 and the discounts far outweighed that. I went by to look at a Max Tow they had and got a good deal on a rubi that had exactly what I would have ordered. Could have waited 6 or so months and been at 0 negative (paying extra like I do) but decided to go ahead and do the deal. That was my call. No one else’s. Just as this is your call. Not mine. Just be honest with yourself, if you have any doubts or think you may regret carrying a bunch of negative and owing far more than the truck is worth, you may want to wait until you can be happy with the deal. If your not happy with the deal you won’t be happy with the truck. Plus if you get it and have any regret, you’ll have to live with that regret for 4 years or more until you’re above water again and that’ll make for a long 4 years.
Previous vehicles I waited until positive equity before trading. This one I didn’t but was only a little in negative and would have taken the negative regardless of which new truck I bought as long as the incentives or discounts covered the negative. I won’t borrow more than the sticker price! That’s a recipe for failure.

Be careful using that mentality when purchasing a vehicle, or anything else for that matter. If you only consider price then you are walking into a perpetual trap. If you finance a vehicle and use sticker price as Your bench mark then you are automatically upside down in your new ride. Instead of price use value. At a certain point the dealer assigns more value to your cash than he does to the vehicle so he exchanges his vehicle for your cash. The same benchmark is used for the next guy through the door so the “price” is irrelevant. If you buy your new truck and drive it home and before it even has 50 miles on it you lose your job and your wife and kids get sick could you execute an “emergency sale?” Nope! A person would have to be pretty stupid to pay sticker price for a truck that they could call Tri City and get it for $6k less. Discounts available to you are available to everyone else too. They should be considered when estimating what a new or used vehicle is worth. I’m a big believer in the “if you cannot pay cash then you cannot afford it” theory but I didn’t always stick to that doctrine. At 50 I look back and wish I had lived with more patience, if I had invested the money I threw down the new car rat hole I would own the dealership today.

 

[CarolinaGladiator]

I traded a Ram I had for only 13 months. I was $2000 negative but still left the dealer happy and below what the JT was worth. I wanted the truck and as long as I could afford it I was going to drive it home. I'm happy with the price, the payment and the terms.

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