If I trade my current vehicle in for a cheaper one will my monthly payments go down?

I recommend just sticking with the tundra. If you get rid of your truck, you will loose a lot of money because its resale value will be lower than what its worth. You will end up paying much more than before in the long run.

Actually, they will probably go UP. The reason is that you currently owe MORE than the Tundra is worth. The difference will be added to the new loan. You will be a few thousand upside down the INSTANT you sign the paperwork. Is have assumed you are looking at t NEW car, because you CAN'T roll the negative equity into the loan on a USED car. What you actually need to do is SELL the Tundra to a PERSON (this nets you $2000 to $3000 more than trading it in). You will have to arraign to borrow the excess amount you owe. Then buy a USED car from an individual. You will pay less than you would at a dealer and come out several thousand ahead of trading in to a dealer.

Let's say you owe 5k (after the trade) on the truck and you want to buy a car for 10k. You'll need the lender to give you 15k for the car so that you can pay off the 5k. It has to be paid off. They are not going to let you make payments against the truck loan. You'll make payments on the car based on the 15k. That's how it works. Which means you'll be more than 5k underwater on the car after you drive it off the lot.

Most reputable companies aren't going to go too far underwater on a car loan. It's too risky for the lender. Your payments would likely go up anyway because you just add on that old balance and the interest rate for such a loan would be sky high.

It depends on the EXACT numbers. Yes it is possible for them to be lower, however you would be overpaying essentially for your new car by rolling over the loan. It already takes about 2-3 years to earn equity in a new car purchase, by adding to the loan amount you could be pushing that into 5 years. In addition, you will have interest compounded on a higher principle balance. Sorry, but you NEVER come out ahead in the long run by rolling over a loan. Your payments MIGHT be lower, however you will be making more number of payments and paying more interest.

in case you assume an income of three grand a month there fairly shouldnt be any reason you won't be able to make a $seven-hundred vehicle fee, except you assume to spend so a lot more desirable in residing expenditures. Wtih one baby the most you should want is two bedrooms and also you should take care of to get that for no more desirable than $seven-hundred a month, that would want to go away $1500 for misc expenditures. in spite of the indisputable fact that, with a truck that prime priced you've likely been residing exceptionally extreme. i might want to reccommend both promoting it (for your husband or privately) and paying for a small, used vehicle outright. Going right into a divorce you don't desire any funds staggering accessible.

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RE :If I trade my current vehicle in for a cheaper one will my monthly payments go down?

I currently drive an 07' Toyota Tundra, but lately been looking into getting something a little cheaper a month. I have already talked with Toyota Financial about lowering my monthly payments a while back, but they said they couldn't. Sounds like a bunch of BS to me, but what can you do. So if I trade my truck for a car of less value would that be a good idea? I still owe on my truck, but I figured if the car I am looking to get is valued lower than my truck then I can use the extra $$$ to put that towards the current loan. Or can I? That is what I am not sure about. Any help will gladly be appreciated. BTW, I already know that if you have a loan and you trade your car in it rolls over to your new loan, but like I said what if the car your trading in has a much bigger value than the car your trying to purchase? Again thanks in advance!

Follow 6 answers

It's a "bunch of BS" to expect you to live up to the financing contract that you signed? I think not.

You will likely end up DEEPER in debt if you roll the negative equity on your Tundra into another financed vehicle - smaller or not.