I owe more on my car than what it is worth. would it be a good idea to get another car and let my old car get.?

• repossesed? I have better credit now than I did two years ago when I bought my first car. I know if I got a new car the interest rate would be way cheaper and this time I would get a more economical car. I know the repossesion would hurt my credit but it seems worth it.. what are your thoughts?

• Answer:

  Hi, Oklatom gave a very good answer to your question but it wouldn't resolve your problem. So for example sake lets say you bought the cars for $17,000.00 and you owe $9,000.00 and the value of the car is $6,000.00 which leaves the car $3,000.00 in the RED but lets get back to that shortly and right now let me explain how auto buying works. When you go to the Auto Dealership they will produce a sticker price and sometimes gives a Dealers price which isn't so ,most auto dealers will get the cars on consignment to sell there cars and if not sold in 90 days the automakers will pick them back up ,now the dealerships will market the price tag to resemble Dealers rollback prices or give cash incentives such as rebates so in short its a win win situation for auto dealerships and they lose nothing so now we come to the financing part of it which is a gimmick by itself, they get you in the office and they know you are nervous and they got you hooked so a sly and shrewd well dressed person comes in acting friendly like he's your best friend and ask you how you would like to finance the car ,for 4 or 5 years and how much money you have to put down and if you are going to get it financed and how your credit is and with all the information they will act like there talking to there Manager which will take about 30 to 45 minutes so then they come back and say you have a blemish on your credit do to a credit card late payment or a unpaid doctor bill which everybody has even with perfect credit and tell you they can get it approved at the bank they work with for example 12 to 14 pct. interest rate and write up a contract for that , be advised that the banks that work with dealerships mark up the percentage rate to assure to get there money and to pay the dealership there cut on that car note also the Banks for the first one or two years will only take out the finance charges first so they get there money first, now if you have been following everything I said then you will see how your car is worth less than you owe and on top of all that the second you drive off the car lot the car depreciates $2,000.00 to $4,000.00 depending on the car. Now let get back to the example part in the beginning if you look at it amount in RED and you know exactly how much it is then I would take that figure and purchase a new dealer driven car which has the same incentives and rebates of a new car that has no miles on it but at way cheaper price so go to a dealership that sells new cars with either 10,000 to 15,000 miles on it ,these cars a loaned to the top notch sales person to advertise the car and when they try and sell these cars they knock off around $5,000 to 10,000 dollars of the sticker price which will be a win win situation for you to get you out of the RED ! Now as for as having the car Repoed , I wouldn't suggest it because then you will lose out all together "Your Car" "Your Credit and still owe money on it.