here is my question, am i beating my head against a wall, trying to tradein a 02 trailblazer for a smaller vehicle? even though i owe more than the trade in value?
Yes. You will get a car loan for the value of the new car plus the difference between the trade value for the Trailblazer and what you owe. That makes the new car a lot more expensive. You can figure it out with a spreadsheet.
You’re upside down as it’s called and there is nothing you can do about it. Welcome to the world of no down, 6 or 7 year financing, etc.
It is not the dealer’s fault you owe more on the vehicle than what it is worth. If you want to be rid of the Blazer about all you can do is sell it in a private sale and have the proceeds applied to the balance owing wherever the financing is handled.
You’re going to be carless and still owing money on the Blazer, and this amount could possibly be rolled over into the balance on another vehicle. This of course makes you even more upside down.
There is no way out so you’re going to have to eat some of that money owing or keep the Blazer and continue the payments.
The real question to you is how many miles per week do you drive?
You may potentially half your fuel bill but it really depends on how much you drive.
If you trade in now you will just be digging yourself deeper into a hole, and you will quickly be back in the same “upside down” situation. Your new vehicle will depreciate rapidly, and soon it, too, will be worth less than you owe.
I suggest you keep the Trailblazer and start making larger payments.
I agree, pay off the current car and keep it until you save enough to pay cash for you next car. Then, never borrow money to buy a car again.
have you looked up what the private party sales prices are? is that more in line with what you owe?
just how far in the red are you?
is there some condition on the blazer which is further depreciating it? (like damage, hi miles, paint damage, or upholstery problems?)
If you finance another 5 years+ you without a doubt will continue to be upside down on your next small car for that time period. Its a very vicious cycle.
Buying a car on credit can double the cost per mile of operating the vehicle. It makes driving far more expensive than it has to be…
Drive something you can afford.