What are the chances

[Deleted User 1039]

No, did you misread what I wrote?

yea that thats the stupidest thing he could do

To get out of his loan and buy a car outright from the extra he will get back because his car is worth more than he owes? How the f**k is that stupid?

Buying a car (guessing a van or 3-row SUV, both expensive) for under $3k is an extremely stupid move. It will be a piece of crap. And when that junker breaks down two days later and they don’t have any cash for repairs or credit cards for emergencies, he’ll be out of a job, too.

[QuantumNursing]

yea that thats the stupidest thing he could do

To get out of his loan and buy a car outright from the extra he will get back because his car is worth more than he owes? How the f**k is that stupid?

Buying a car (guessing a van or 3-row SUV, both expensive) for under $3k is an extremely stupid move. It will be a piece of crap. And when that junker breaks down two days later and they don’t have any cash for repairs or credit cards for emergencies, he’ll be out of a job, too.

She doesnt understand that the original loan still needs to be paid off. In this situation the brother owes 27,000 dollars with an equity of 3000 dollars. The 3000 dollar equity will be used as the down payment for new car and the old loan will be rolled over into the new loan. So a less expensive car will cost more than the original car in price and even the interest rates.

[QuantumNursing]

No, did you misread what I wrote?

yea that thats the stupidest thing he could do

To get out of his loan and buy a car outright from the extra he will get back because his car is worth more than he owes? How the f**k is that stupid?

Ypu realize the original car loan just wont disappear,right?

[Deleted User 1039]

To get out of his loan and buy a car outright from the extra he will get back because his car is worth more than he owes? How the f**k is that stupid?

Buying a car (guessing a van or 3-row SUV, both expensive) for under $3k is an extremely stupid move. It will be a piece of crap. And when that junker breaks down two days later and they don’t have any cash for repairs or credit cards for emergencies, he’ll be out of a job, too.

She doesnt understand that the original loan still needs to be paid off. In this situation the brother owes 27,000 dollars with an equity of 3000 dollars. The 3000 dollar equity will be used as the down payment for new car and the old loan will be rolled over into the new loan. So a less expensive car will cost more than the original car in price and even the interest rates.

Not sure why you are explaining that to me, but you clearly didn’t read the post you quoted initially.

She suggested selling the car, satisfying the loan entirely, and then using any profit to buy an old car outright. No down payment. No new loan. Just buy a shitty car worth nothing.

Then you said “he’d still have a car payment and loan.” Which, obviously, was incorrect.

[Deleted User 1039]

yea that thats the stupidest thing he could do

To get out of his loan and buy a car outright from the extra he will get back because his car is worth more than he owes? How the f**k is that stupid?

Ypu realize the original car loan just wont disappear,right?

When you sell something worth more than you owe, the portion you owe gets paid first to the bank, the loan is closed out entirely, and you stick the profit in your pocket. So yes, the loan disappears.

[Pjmm]

yea that thats the stupidest thing he could do

To get out of his loan and buy a car outright from the extra he will get back because his car is worth more than he owes? How the f**k is that stupid?

Because it doeant work like that. Trade in value is USUALLy less than what its worth outright. Meaning it would be easier to go upside down in the loan. He only has 3000 grand in positive equity.

This. Cars depreciate soon as one hits the road. I'd get something cheap and used. Or do everything in my power to make the car I've got now work. He's already not able to pay two credit cards off. He needs to speak to a financial advisor and a box of condoms.

[QuantumNursing]

To get out of his loan and buy a car outright from the extra he will get back because his car is worth more than he owes? How the f**k is that stupid?

Ypu realize the original car loan just wont disappear,right?

When you sell something worth more than you owe, the portion you owe gets paid first to the bank, the loan is closed out entirely, and you stick the profit in your pocket. So yes, the loan


Trading in isnt the same as selling it. The values are different. A dealership isnt going to give you what its worth cash...They wont make profit. He would still have to pay at least 24,000 of the original loan to break even. The rest will roll over into a new loan with extremely high interest rates

[QuantumNursing]

To get out of his loan and buy a car outright from the extra he will get back because his car is worth more than he owes? How the f**k is that stupid?

Because it doeant work like that. Trade in value is USUALLy less than what its worth outright. Meaning it would be easier to go upside down in the loan. He only has 3000 grand in positive equity.

This. Cars depreciate soon as one hits the road. I'd get something cheap and used. Or do everything in my power to make the car I've got now work. He's already not able to pay two credit cards off. He needs to speak to a financial advisor and a box of condoms.

They depreciate 10 percent as soon as you drive off the loy then 10 percent every year after. If you are lucky

[QuantumNursing]

Buying a car (guessing a van or 3-row SUV, both expensive) for under $3k is an extremely stupid move. It will be a piece of crap. And when that junker breaks down two days later and they don’t have any cash for repairs or credit cards for emergencies, he’ll be out of a job, too.

She doesnt understand that the original loan still needs to be paid off. In this situation the brother owes 27,000 dollars with an equity of 3000 dollars. The 3000 dollar equity will be used as the down payment for new car and the old loan will be rolled over into the new loan. So a less expensive car will cost more than the original car in price and even the interest rates.

Not sure why you are explaining that to me, but you clearly didn’t read the post you quoted initially.

She suggested selling the car, satisfying the loan entirely, and then using any profit to buy an old car outright. No down payment. No new loan. Just buy a shitty car worth nothing.

Then you said “he’d still have a car payment and loan.” Which, obviously, was incorrect.

You are highly mistaken. I suggest you read ther original reply "to just trade the damn thung in" which I replied was the stupidest thing he could do. Trading in is not the same as selling it outright. I agree he needs to sell it but thats going to be difficult with such a high price tag and not having a clear title

[Deleted User 1039]

She doesnt understand that the original loan still needs to be paid off. In this situation the brother owes 27,000 dollars with an equity of 3000 dollars. The 3000 dollar equity will be used as the down payment for new car and the old loan will be rolled over into the new loan. So a less expensive car will cost more than the original car in price and even the interest rates.

Not sure why you are explaining that to me, but you clearly didn’t read the post you quoted initially.

She suggested selling the car, satisfying the loan entirely, and then using any profit to buy an old car outright. No down payment. No new loan. Just buy a shitty car worth nothing.

Then you said “he’d still have a car payment and loan.” Which, obviously, was incorrect.

You are highly mistaken. I suggest you read ther original reply "to just trade the damn thung in" which I replied was the stupidest thing he could do. Trading in is not the same as selling it outright. I agree he needs to sell it but thats going to be difficult with such a high price tag and not having a clear titleScreenshot_20190211-222404.png

Trade in or private sale really doesn’t matter. Either way, you are paying off a loan, then buying another vehicle outright. Your response made no logical sense at all unless you misunderstood that. Even if he got less with a trade in vs a private sale, there still wouldn’t be a loan or a car payment. She pretty clearly specified that the second car should be paid in full.

Then you went on to further confirm your own misunderstanding when you quoted me and said:

“She doesnt understand that the original loan still needs to be paid off. In this situation the brother owes 27,000 dollars with an equity of 3000 dollars. The 3000 dollar equity will be used as the down payment for new car and the old loan will be rolled over into the new loan. So a less expensive car will cost more than the original car in price and even the interest rates.”

That was

A) clearly not what she was talking about and

B) factually incorrect. The equity would be the down payment, but the $27k remainder wouldn’t still be owed, so it wouldn’t “roll over into a new loan.” The dealer would pay it, because the car is worth $30k, not $3k. The loan would be paid in full, the lien removed, title transferred, and $3k would be applied as downpayment (or deducted from the purchase price, saving you in sales tax). Then a new loan would be established for whatever he owed on the new car. The only way that a new car would cost more than the old one is if the new car simply had a higher sale price.

If he were upside down on the car you’d be correct about loans rolling over, but it wouldn’t be $27k he still owed, just however much he was underwater for (so if he owed $30k and it was worth $27k, it would add only $3k to the new car loan). But that isn’t the case here. And, again, see A.