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My friend is upside-down on two car loans and wants to trade them both into a new loan-- this sounds to me like a terrible idea, but is there a better solution?
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A friend of mine told me he is upside-down on two car loans and wants to roll them both into a loan on one new car. One car is like 7k under and the other is around 8k under.

This happened because he bought a new car for his girlfriend and then they broke up, and she refuses to take the car.

He seems to think that if he gets an expensive new car with the trade-in, a dealer will eat the negative equity which seems obviously untrue to me. If he rolls over with 15k negative equity, how screwed will he be?

Is there a better option if he can't currently afford both car loans or wants to go down to one car?

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Posted
3 years ago