Tips on Buying Cars: Upside down and would like new car, kelly blue book, 2008 mazda3

Question
Hi,

I have a 2003 Honda Civic Sedan that I currently finance and owe $9,000. It has 94,000 miles and was running great until a month ago when someone hit the driver's side front end of my car. Insurance covered the damages (I was not liable), but my car is NOT running like it used to. The collision place told me the damages were mostly cosmetic, but I did have a cracked engine mount that made my car shake. That was replaced but the car is still shaking.

My fear is that I may have to keep putting money into my car due to damages that the collision place overlooked from the accident. Even if insurance paid for more repairs, I doubt my car will ever be the same.

I have been entertaining the thought of financing a 2008 Mazda3. However as I stated earlier, I owe $9,000. I will probably be upside down when I go to finance a new car. Kelly Blue Book estimates the value of my trade-in only at about $6,000. If I got that amount I will owe the bank $3,000 more. I don't want to add that to a new loan.

My question is, based on what I owe on the Civic, should I even be thinking about a new car? I have very good credit but am afraid I will not get a good deal on my trade-in. Also, am I legally bound to tell the dealership that will be estimating the value of my car that it was in an accident?

Any advice would be appreciated.


Answer
Hi Laura,
First sorry for the delay in getting back to you.

The dealer that will appraise your trade in will be able to tell if it was in an accident. Might as well tell them. Go ahead and go to a dealer and get it appraised so you know what you are dealing with.

Every $1000 negative will raise your payment about $25. You could also consider leasing as that will keep your payment low and cover your negative without you really knowing it.

Let me know if you have any other questions Laura...glad to help.