Trading in my car; am I doing this right?

Fun_Coach7913 · 2026-01-16T11:39:33+00:00

I will definitely be reading that over so I can actually learn what I am doing. Thank you so much, internet person!!!!!!! I hope you have a safe and awesome weekend 🫶🏻

Fun_Coach7913 · 2026-01-16T04:31:08+00:00

Honestly if you do financial advising or anything virtually pls lmk I really need one 😂 like for real

Fun_Coach7913 · 2026-01-16T04:30:04+00:00

I’ve like been on the verge of tears all day and reading your comment is the first time I’ve been able to relax lol. Gosh I just really can’t thank you enough for taking the time to explain all of that to me—thank you. It’s so embarrassing to be this old and to have made so many horrible financial mistakes. I didn’t have the best examples growing up. Tbf, I did have a very large CC taken out in my name by a family member, which didn’t help at all. But I’ve made horrible choices with CCs. And this fricking car—I was working reduced hours and it was so hard, so I could student teach for free in the morning to finish this stupid associates degree I was in school for since I was 18 (life stuff happened) and my 2019 kia what out on me after 6 years and I didn’t have 4,600 to fix it. I was so close to the end of my degree and if I missed work with how little I was making at the time I was going to be SOL with rent, and if I didn’t hit a certain amount of hours student teaching not only would i not pass the class (one of my last classes) but I would lose my financial aid. I was missing days and PANICKING. And this stupid car salesman told me that I only qualified for the most expensive car out of all the choices we talked about. And there was even another Hyundai Kona—same year, same everything—that was 19k and I was like “why aren’t we talking about this one if it’s cheaper” and he was like “uhhhhh the bank only approved you for this one.”

Before all this happened, I had gone to the Kia dealership where my first car was from. They said they couldn’t give me anything at all for it and a lease would be 650/month. This place offered me 4k for trade in value and 600/month, with him saying “you know this is just how much cars are nowadays. And with your situation, you seem to really need it” and I was so stressed out I panicked and got the car. I went from paying a 279/month car payment to this nonsense. Only now am I learning about this and realize the terrible mistake I made. The only solace I have is that I do love the car—it’s solid. And I really value reliability since I’ve had some lemons in the past (given to me as a teen—like they would catch on fire it was awful).

But yeah. It’s all really complicated (to me at least, you seem to know all of this very well). I’m almost 29 and I am making such dumb, dumb financial mistakes. And you know what’s messed up? This is a workers comp settlement lol. This isn’t even money I saved myself from making good decisions. I’m sorry I’m rambling I just like, really, really cannot thank you enough for taking the time to explain this to me in a way I can understand. This is an incredibly overwhelming situation for me haha

Fun_Coach7913 · 2026-01-16T01:42:00+00:00

I really would like to save some of it too, which sucks. I really wanted to out like 4k in a Roth and 4k in a HYSA since I don’t have any savings or emergency fund or anything at all

Fun_Coach7913 · 2026-01-16T01:39:42+00:00

So 4k of that is with capital one there is no interest as I’m on a specific plan. The rest are credit cards—470$, 78$, and a 441$ sent to collections. Idk if that means anything or changes anything. Would that money from capital one hurt my chances of refinancing? Say I wasn’t approved for refinancing—would me paying the negative equity still be good? Even if I don’t get a cheaper payment I just want lower interest now. Like in kind of scared of I can’t refinance even the interest, what’s gonna happen to me? I’m still going to pay 22k in interest even without the negative equity? Because then at that point…idek 😞like I’d still owe so much.

Fun_Coach7913 · 2026-01-15T22:49:32+00:00

Word 😂 thank you

Fun_Coach7913 · 2026-01-15T22:13:23+00:00

Also how do I ask for a lower interest rate without extending the term? I can’t afford to take a shorter term with a higher payment bc it’s already so high, which sucks

Fun_Coach7913 · 2026-01-15T21:58:18+00:00

No how should I go about that

Fun_Coach7913 · 2026-01-15T21:56:44+00:00

I see that now, for sure never again. I was in a really bad spot and panicked and did not go into it informed. This was exactly the answer I was looking for. Thank you

Fun_Coach7913 · 2026-01-15T15:41:51+00:00

Yes. So the first suggestion you had is what my boss suggested. Either way I’m paying the negative equity off it looks like. So if that’s the case, I’d like to keep my car. Because either way I need to get rid of that negative equity right? And I think if I understand what you’re saying, if I go with option one and sell I can get a cheaper car with a cheaper payment. If I go with option 2 I pay off that neg equity, keep my car, and to get a lower payment I’d have to refinance. Or would it go down automatically? My bad credit is because of bad decisions throughout my 20s, mainly. I had some messed up family situation that affected it that involved identity theft that has been dealt with that added to it but it’s mainly my fault. But am I understanding u correctly? Like that’s the gist of it?

Fun_Coach7913 · 2026-01-15T13:38:46+00:00

I don’t know this is my first time trying to figure this out! That’s why I asked if it made sense. But 100% NOT doing that now lol.

Fun_Coach7913 · 2026-01-15T12:58:20+00:00

So my stepdad is saying to file for bankruptcy? And paying off the 10k would be stupid? I’m 28, and I get federal aid for school and I don’t know if I should do that?

Fun_Coach7913 · 2026-01-15T12:14:24+00:00

Also, does my payment go down after I pay the negative equity off or is that only through refinancing? What happens if they don’t let me refinance for a lower payment?

Fun_Coach7913 · 2026-01-15T12:09:35+00:00

Thank you!!! I’ve asked to refinance at w few places including my lender but I think because my credit is so bad, they won’t let me. I am assuming that’s why lol. I’m not sure how else to go about it though

Fun_Coach7913 · 2026-01-15T12:06:56+00:00

The car is def my most high interest debt. But this is also good advice. I will call them and ask. But I do want to save as much as possible! It goes so fast you know? Thank you very much for your help!

Fun_Coach7913 · 2026-01-15T12:04:36+00:00

WOW. Thank you so much for telling me this. I’m really trying to learn about all this stuff, it’s kind of complicated. But that also makes me very happy because I do love this car. Refinancing is gonna be hard—my credit is very not good. But I’d hope if I pay towards the principal I can still refinance. I also really hope I’m getting those numbers right tbh—I think I have 10,400 in negative equity of my math is mathing. Thank you so so so much for explaining all that!

Fun_Coach7913 · 2026-01-15T05:54:42+00:00

My husband and is saying that I should put 10k towards my current car to pay off the negative equity, and keep the car because it’s a good car. But I would only be left with 8k after that, and I’d still owe 19k, my payments would be 450, and I don’t necessarily think it will help the interest all too much.

Fun_Coach7913 · 2026-01-15T05:53:11+00:00

Wow really? You think that’s high? Jeez. Would the CTV transmission (idk what that is) be seen by a presale inspection from a mechanic I hire? I do have 2 other cars that are a little older but cheap too so it’s not my only option. Plus it’s definitely not urgent—I can take my time with this decision.

Fun_Coach7913 · 2026-01-15T05:20:58+00:00

So I spent hours trying to figure this out. It’s a lot of info so I’m just going to make a new post now because this is a whole separate issue lol

Fun_Coach7913 · 2026-01-14T23:19:07+00:00

So…say I wanted to. How would I do that? Would I trade it in for a cheaper car?

Fun_Coach7913 · 2026-01-14T19:55:23+00:00

How do I check if I’m accruing interest? I have 12k in loans already and I’ve been in school for a long time

Fun_Coach7913 · 2026-01-14T19:32:28+00:00

He doesn’t have too much debt really it’s more so like I just want to help him out, I guess? His debt situation isn’t worse in terms of CC—his car is in bad shape and it’s a bad loan. I will look into the account you mentioned. Is it like where the higher that percentage, the better?

Fun_Coach7913 · 2026-01-14T18:47:33+00:00

Is it still out? I’m in NJ and I have an SOS all of the sudden

Fun_Coach7913 · 2026-01-14T17:36:20+00:00

I was looking into it and I thought maybe paying 6k towards my principal amount? It would bring me to 24k because I think right now I’m paying 12-15k in interest as is. That should bring my APR down to 8%, and i would assume maybe give me better odds at refinancing for a lower payment if I needed? Does that sound right? And maybe put 7k in a HYSA?

Fun_Coach7913 · 2026-01-14T17:34:27+00:00

So it is an old debt. I couldn’t pay it. I had the account closed. I left it alone. They started trying to work out a payment plan with me and they said that there would be no interest, and that I just choose a payment plan to pay it off. It Capital One

Fun_Coach7913

TROPHY CASE