Should I trade in or sell?

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PrettyInMetal
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Joined: Sun Dec 01, 2019 6:22 am

Should I trade in or sell?

Post by PrettyInMetal » Sun Dec 01, 2019 6:51 am

Hey Everyone,

So I have a 2011 Chevy Equinox that has been giving me a lot of problems for the past 4 months. I fixed all of those problems costing me about $3.5K total. Now another issue just came up yesterday and the chevy needs to be tuned up with new spark plugs and some coils. I'm pretty much fed up with the vehicle plus I have a little one and the vehicle is now becoming dangerous because if I go up a steep hill the vehicle stops accelerating and the steering wheel lock and she's in the car seat when it happens so i would like to get rid of it.

Trade in option: I'm currently "upside down" I owe $9K left and the value is $4K

Sell it option: I would have to give what I earned from the sale to the lender so that pretty much sucks

I was wondering if I got $4K from trading in the chevy and then bought a used vehicle for $4K would I be able to sell that new vehicle to a private seller or dealership and pocket back that $4K? What should I do? Thanks :)

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RickBoglehead
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Re: Should I trade in or sell?

Post by RickBoglehead » Sun Dec 01, 2019 7:30 am

When you trade in the vehicle, the dealership will see that there is a lien on it, and that lien has to be settled (the $9,000 loan). Therefore, you won't be able to "pocket" anything. If you bought a $4,000 vehicle from the dealership, you'd have to get a new loan for $9,000 ($9,000 loan minus $4,000 trade plus $4,000 new vehicle), plus transferring title and registration fees.

Your mechanic seems to be missing something. If it's been in the shop for $3,500 in repairs, why didn't they find the spark plug and coil issues? Steering wheel should never lock with the key turned.

I suggest you find a forum that focuses on Chevy's including 2011 to get some better advice.
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HomeStretch
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Joined: Thu Dec 27, 2018 3:06 pm

Re: Should I trade in or sell?

Post by HomeStretch » Sun Dec 01, 2019 7:34 am

The way it usually works is that before you sell car #1 you either have to payoff your car loan (in order to have clear title to sell) or rollover the balance from the loan into a new loan on car #2.

chevca
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Re: Should I trade in or sell?

Post by chevca » Sun Dec 01, 2019 9:55 am

All kinds of wrong with your thinking here. ...

Plugs and coils is just maintenance. It's a 2011 vehicle, so that shouldn't be too discouraging.

The dangerous part you mentioned.... that needs to be figured out and fixed! Let alone thinking you should sell it to someone with that scary issue.

How are you that upside down on a 2011, 4k vehicle? Either way you are. There's no way to "pocket" any money, at least legally. It's not really yours if you have a loan on it. It belongs to the lender. You would have to arrange through them to sell it privately. As in the buyer would pay the lender, not you. And, you would have to cover the difference. If you trade it in, the dealer gives you the trade value towards the new vehicle and adds the rest of your old loan to your new loan.

I dont know your money situation, but I dont think there's an easy way out of this for you. You're probably stuck with this vehicle. Get it fixed so it's not dangerous for you and your kid.

It's also unlikely your vehicle is worth 4k from your description. So, I wouldn't even keep that number in mind for all this.

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scubadiver
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Re: Should I trade in or sell?

Post by scubadiver » Sun Dec 01, 2019 9:07 pm

PrettyInMetal wrote:
Sun Dec 01, 2019 6:51 am
Hey Everyone,

So I have a 2011 Chevy Equinox that has been giving me a lot of problems for the past 4 months. I fixed all of those problems costing me about $3.5K total. Now another issue just came up yesterday and the chevy needs to be tuned up with new spark plugs and some coils. I'm pretty much fed up with the vehicle plus I have a little one and the vehicle is now becoming dangerous because if I go up a steep hill the vehicle stops accelerating and the steering wheel lock and she's in the car seat when it happens so i would like to get rid of it.

Trade in option: I'm currently "upside down" I owe $9K left and the value is $4K

Sell it option: I would have to give what I earned from the sale to the lender so that pretty much sucks

I was wondering if I got $4K from trading in the chevy and then bought a used vehicle for $4K would I be able to sell that new vehicle to a private seller or dealership and pocket back that $4K? What should I do? Thanks :)
Welcome to the forum!

You should select the "Keep it and get it repaired option". I get that you're frustrated with the vehicle, but given that you owe $9K on something only worth $4K, you don't have the luxury of getting rid of it.

Keep it and get it repaired, to include the safety issue you mentioned.

Good luck.

Scubadiver

atikovi
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Re: Should I trade in or sell?

Post by atikovi » Sun Dec 01, 2019 9:19 pm

PrettyInMetal wrote:
Sun Dec 01, 2019 6:51 am
Sell it option: I would have to give what I earned from the sale to the lender so that pretty much sucks
Plus another $5,000 out of pocket if you actually get $4,000 for it.

boomer_techie
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Re: Should I trade in or sell?

Post by boomer_techie » Mon Dec 02, 2019 2:43 am

PrettyInMetal wrote:
Sun Dec 01, 2019 6:51 am
vehicle is now becoming dangerous because if I go up a steep hill the vehicle stops accelerating and the steering wheel lock
I presume the engine is stalling which leads to a loss of power steering, at which point you find it too hard to turn the steering. Thus, fixing the stalling issue should fix the steering issue.

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Stinky
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Re: Should I trade in or sell?

Post by Stinky » Mon Dec 02, 2019 5:53 am

Pardon me, but how did you end up owing $9,000 on a $4,000 vehicle?

I understand rolling old car notes into a new note and ending up with negative equity, but this is pretty extreme.
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Topic Author
PrettyInMetal
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Joined: Sun Dec 01, 2019 6:22 am

Re: Should I trade in or sell?

Post by PrettyInMetal » Fri Dec 06, 2019 6:18 am

Stinky wrote:
Mon Dec 02, 2019 5:53 am
Pardon me, but how did you end up owing $9,000 on a $4,000 vehicle?

I understand rolling old car notes into a new note and ending up with negative equity, but this is pretty extreme.

I apologize for the confusion so the car was $17k originally and I put down $5k as my down payment which brought the final price down to $12k and now I owe $9k left on the vehicle. The $4k is the KBB value of the car

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SmallCityDave
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Re: Should I trade in or sell?

Post by SmallCityDave » Fri Dec 06, 2019 6:20 pm

PrettyInMetal wrote:
Fri Dec 06, 2019 6:18 am
Stinky wrote:
Mon Dec 02, 2019 5:53 am
Pardon me, but how did you end up owing $9,000 on a $4,000 vehicle?

I understand rolling old car notes into a new note and ending up with negative equity, but this is pretty extreme.

I apologize for the confusion so the car was $17k originally and I put down $5k as my down payment which brought the final price down to $12k and now I owe $9k left on the vehicle. The $4k is the KBB value of the car
How long have you owned this car and how many miles are on it?

The issue you describe sounds worse than needing a tuneup.

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