Question : Upside Down on two cars. Need to trade for one. Okay credit. Help!?
I have two cars. My 2004 mazda 6 and my sons 2004 nissan sentra. He left for college, so I need to trade in both cars for one car for myself. Both cars are in my name.We are about 7500 upside down on both cars. I have a FICO score of about 620.

I dont know whether it is better for me to go with a new car, (with a rebate which will eat up some of the neagative equity), as well as some of my money down. But i will still end up rolling over about 4000 ontop of my new loan.(ill probably want to trade the car in after 3 years, i like the car. but i dont love it)
OR
Should I buy a used car, roll about 5300 of my old loan on top of the new loan.i will most likely keep the used car and give it to my son, and keep it till its paid off
ALSO..
i was wondering if my credit score was good enough for me to lease a car. that way i wont have to worry about neg. equity in the future.

I dont know what to do.I NEED to get rid of both cars. The insurance and car payments cost me too much! HELP
trade credit insurance

Best answer:

Answer by forjj
My suggestion-if you own your home, and have a little equity built up, get a home equity loan. the interest is tax deductable, and you can pay as you want/need. you will have a minimum payment, but you can pay more as you can afford, so that you can get out of debt sooner. i would trade the one car, pay off the other with the home equity, and then sell it. then you are left with one car payment and one smaller equity payment