Using an enthusiast's car to get rid of an upside down car payment? Anyone done it?

So I have a 2012 Mazda 5 that I bought new. I really dislike it and would like to get rid of it. It was bought back when I was married, for my wife, but I got stuck with it after the divorce. Thing is, because it has crazy depreciation, I am very upside down on the loan. And I don't see the situation getting any better anytime soon.

So it got me thinking...since I am stuck with a car payment anyways, maybe I should trade it in for something that is already at the bottom of its depreciation curve to get rid of the car payment faster.

I'm thinking a 2006 RX-8 or 2002 miata or a BMW E46 330CI or .... something around 5-7K$ that won't drop too much in value.

Any flaws in my thinking? Any other options?

2012? How many more months on the loan? Sure you can't just stick it out for a bit longer?

The best way to do such a thing would be to buy another new car. Mainly because they tend to have loans with lower interest rates. Plus, you may be able to negotiate a higher trade-in allowance on the 5. Does a new MX5 or FRZ/BRZ tickle your fancy?

Part of the problem with your choices is the age. Banks often balk at loans on cars older than 10 years. The RX8 might work, but the Miata and E46 are probably out. Or the interest rate may be eye-watering.

Interest rates will kill you on this plan. Plus very few people doing 120%+ loans on used or even new cars.

Save a grand or two, sell it on Craigslist and take a personal loan from the bank or use a 0% credit card for the rest and pay it off as quick and you possibly can.

wearymicrobe wrote: Interest rates will kill you on this plan. Plus very few people doing 120%+ loans on used or even new cars. Save a grand or two, sell it on Craigslist and take a personal loan from the bank or use a 0% credit card for the rest and pay it off as quick and you possibly can.

This ....

Post pics. We love 5's around here. (I've been casually looking for one for a while) Retail/private party may possibly be more than you owe even if wholesale/trade isn't, or at least might result in less of a loss.

They sell quickly here also, I see you are in Canada I figured timeouts be the same there. Depreciation has been fine on mine?

do it... if you lose a little money in the process, who cares? you only live once, might as well enjoy it.

If you're still upside down on a four year old car, you need to focus on paying it off, or at least getting to even. The LAST thing you want is to be paying used car interest rates on a 120% loan.
The math really depends on your credit and what interest rate you're paying, but going deeper into debt is seldom the best solution.

novaderrik wrote: do it... if you lose a little money in the process, who cares? you only live once, might as well enjoy it.

Living your life deeply in debt and funding a bank's dividend payments is not enjoying life.

dculberson wrote:

novaderrik wrote: do it... if you lose a little money in the process, who cares? you only live once, might as well enjoy it.

Living your life deeply in debt and funding a bank's dividend payments is not enjoying life.

staying upside down on something for a little while won't wreck your future- if you're in deep, you might as well at least enjoy the thing that you are in deep over.. consider the money lost as the price for your sanity.