^^ She's right, for the most part (Kelly Marie). It's not that easy to roll over that much negative equity. You have to have really good credit and find a car that will work for the deal. You can't finance a $12,000 car for $20,000. The car is the collateral for the loan and no one is going to loan you that much more than the collateral is worth. To absorb negative equity, dealers will do a lot of creative math on the paperwork and try to get you in a car that they are selling for less than the book value.

I actually worked in dealership finance, I've done it plenty of times and I'm an accountant.

What we would do is find the used car on the lot that we had a lower amount invested in. Say a Taurus that we bought for $6K but would sell for $12K and had a book value of $14K. We would sell for $12K, roll over $2K to finance the whole $14K and then give them a little more for their trade, ask for more down payment, anything we had to do to make up the remaining negative equity and still make as much as possible off the deal.

You should try to pay as much as you can on your car in the next couple of months, sell it private party and maybe buy a scooter or something if you really can't afford to put gas in it.

Taking $8K in negative equity is horrible. You will always owe more on your car than it's worth. Do you have GAP insurance? What if you get in a wreck or it's stolen? There has to be a better option than digging yourself into a huge financial hole.



BTW, Redrumracer, MSM's are 23-26 city and 29-30 highway. Premium only.