I have a car which is valued at about $4.5K. My loan is still at $6.5K. I have about $2K in negative equity in my car. I want to trade my car and get either a dual cab truck or an SUV of some sort. My current car is not economic with fuel, and I also need extra space. Plus winters around here are harsh and difficult to drive in. I would like a 4x4 to commute and get around if there is snow on the ground. My current rear wheel drive gets stuck in half an inch of snow. In addition my girlfriend, her two girls and my son have a hard time fitting in my car. In short I need to get rid of it and soon. I have found SUVís which I like for around $6K give or take. I understand I'm probably going to have to eat the negative equity and I am prepared for that. I'm stuck between a rock and a hard place here.
How do I trade a car with negative equity? Can it be done? If so, what can I expect? What do I need to do? I have been on time and current with my current car payments. I really need to have a have a 4x4 and more space before winter hits. Right now, not trading is not an option. I want to know what I can expect and what needs to be done to do this.