QuestionI'm trying to buy a new SUV but I'm upside down with my trade in. I'm about $6,000 upside down! How can I get out from under this and keep my payments where I can afford a new SUV?
AnswerI get this question quite often, and I've found that the following analogy helps in explaining your situation and what you're trying to accomplish:
I own a home that's worth $150,000. I owe $200,000 on the house, and I'd like to sell it and buy a newer and bigger house that's worth $350,000. How do I do this while keeping my monthly mortgage payment the same?
Unless I'm willing to come up with several hundred thousand dollars in cash, then I'm not going to be able to buy that new house. Same with your new SUV; unless you put down about $6,000 in cash, then your monthly payment is going to go up by about $150/ month (assuming you finance the new vehicle for 5 years). I know that's not the answer you want to hear, but it is the realistic one.
