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Dear Terry,
I was reading your answer to a lady who inquired about voluntary repossession. What are the chances that a car
dealer will take my car back and trade me down to a car I can better afford?
I have had a car since November and put a little more than 2,000 miles on it. I am not delinquent
-- in fact, I make my payments way ahead of the due date. However, because of other recent financial challenges,
the monthly note has become too steep for me.
Would my dealership trade me down to a less expensive car, thereby reducing my monthly note? What
are my chances of negotiating such a transaction?
-- Emma
Dear Emma,
Stay away from the car dealer. For someone in your situation, with presumably good credit, you could find yourself
bamboozled into trading your current car and having the negative equity rolled into a new, longer-term loan on a
cheaper car.
The result is that while you might see slightly lower payments, you would get socked with bigger
interest costs that you'd have to pay for many years before your new car would be worth what you owe.
Try to pay down what you owe on your current car so you can sell it to pay off the loan. Then,
negotiate a new deal on a less expensive vehicle.
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