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Need new car, to trade in or not?


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Hi everyone:)++

I'm not sure if this is the right area to post this question, sorry if not.

I have a small car that barely fits my long-legged kids. I never reaffirmed it during by Ch7 that was discharged early 06. I make my payments ontime. I am upside down on it. Drive Financial says I still owe $7k.

I checked KBB and it values at $3590 for dealer trade-in. I thought about offering Drive a settlement offer of $1200, then turning around and trading it in for a new car. I could also just return it after I get a new car and be done with Drive but I want to try to recover something from this. My fico is 658. I need guidance. I have no idea what percentage they would be willing to take since I can basically return the car and they can never go after me for the $$. Any advice?

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if you can dump it on drive and walk away with out troubles later, do that. However, I am sure drive can still trash your credit by reporting it repo'd. If you try and trade it in they will take the 4500 (or more) and tack it on to your new loan. A score of 658 should get you a good rate on a car. If your a power shopper you might be able to get a car with enough "room" in it (higher value than asking, this is happening a lot lately) and the upside down in your current car can be "absorbed" in the value of the new car. Remember, if your upside down and trade in, you will be even more upside down in the new car. Got any cash laying around? If you need something better perhaps buying something cheap (1500-2500) to fill the gap when you need the extra room.

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Thanks Merkurfan!

I thought that since it was discharged in my BK without me reafirmming it drive could never come after me for $ if I walk away. Since I am still making voluntary payments they have no problem with letting me keep it. It does show as IIB and closed with zero balance on my CR.

Would offering a settlement change this then?

I do have the cash for a down payment but wanted to try to get the pink for the car and either resell or trade for the difference.

Am I on the right path or have I detoured to ohcrapville again?

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