Would it help to trade in 2 cars for one car?

Question

My hubby and I financed a new neon in 2005. After our son was born later that year we realized it was too small for our family and we needed something bigger. Luckily my mom needed a car so she took over payments and we got a '01 Ford Escape in late 2005. The escape has low milage but ever since we got it has been having problems and doesnt get the gas mileage its supposed to. Last Sept my mother died forcing my husband and I to take back the neon and we could afford it for a while but now with the ecomony being so bad we can barely afford one. The neon is $348/month and the escape is $405/month not including insurance which is $258/moth for both. Both cars still have atleast 3 years left tp pay on them and both are not worth what we owe (about $4-5,000 shy). The neon is in my name only but the escape is in my husband and my name. If we have to have one of cars repo'd it would be the neon as it would only hurt my credit. I dont want to have to do this so I'm trying to find alt. methods to deal with this problem. Does anyone know if we can trade in the two cars for one and get a lower monthly payment? (we dont care about the length of the loan, because we have no other choice) Also we have another car with no payments on it that gets good gas mileage and runs good so if we were to get rid of one of the two with payments we would have a car for each of us (we both work).....Any advice anyone?

Answer 1

yes



mark k

Answer 2

If you have good credit, try this..



Look up the Neon, on KBB.Com, and put it up for sale, LOCALLY for the "private party" price...



Go to a bank, and see if you can get an unsecured loan for the balance due. If you can.



You can also, take the plates off of the Neon, let it sit, with just comprehensive insurance on it, that will save a huge amount of insurance money, but if you do this, be certain to call the loan holder and explain why you are doing it...as long as it has comprehensive insurance on it, they will allow it.



If you manage to get a loan for the difference, and sell it, you will still have a payment, abet a much smaller one for awhile..



This is one of those situations, where life just is not fair.

Answer 3

trading them both in is your best bet to get rid of the 2 payments. Neither car is very valuable. So far you have not made good choices in cars. One was too small, the other was unreliable. Make sure to do some homework so your next car is a "keeper"..