2021 Kia Telluride driver paying $1,300 a month wants to trade for a cheaper Toyota, but dealer refuses
If you’re looking to swap a fancy ride for something more economical, you might find it’s easier said than done. One driver went from a more affordable compact car to a 2021 Kia Telluride, citing her “need” for higher-end features and more space. In turn, though, she rolled negative equity into a large monthly payment…and now she’s trapped underwater. “I just can’t afford the car anymore,” she tells an Atlanta-based car dealer.
Telluride driver owes $54,000 on a car she bought for $39,000
Yusuf Benallal is a used car dealer operating out of the Atlanta, Georgia area. He takes lots of calls from drivers wanting out of their tough car loan situations. Unfortunately, he just can’t help them all.
Stephanie traded in a Mini Cooper for a 2021 Kia Telluride. The retailer sold the Telluride for $39,000, but costs didn’t end there. She rolled over $12,000 from the outstanding Mini loan to the Telluride deal. Stephanie also purchased an extended warranty, adding to the loan. All told, she drove off in the Kia for a whopping $60,000 finance balance.
Her mom cosigned for a 15% interest rate, leaving Stephanie paying $1,300 a month for the Telluride. Now, she tells Benallal that she broke up with her boyfriend and needs something cheaper.
Benallal’s lot, Legacy Motor Cars, lists a 2018 Toyota Highlander. Stephanie says she’d like to trade the Telluride in for the Toyota SUV.
“Bigger isn’t always better”
It’s nearly impossible for the dealer to figure out how to get Stephanie into the Highlander.
The thing is, he explains, she’s so far underwater that she’d need somewhere around $25,000 to $30,000 in cash to get out of the Telluride. Since she clearly doesn’t have that much cash, no financial institution is going to approve rolling over her negative equity into yet another loan.
To make matters worse, she has a low credit score, including past repossessions.
The dealer estimates that attempting the deal at all, if it even goes through, will land her an even higher car payment than she already has. “My advice to you is keep paying off the car as fast as possible,” Benallal tells her, “Or go get a refinance with your mom if she has good credit.”
The used car dealer often tells drivers stuck underwater to just do what they can to pay down the loan until they can offload the car. He says the same thing to the Telluride owner. “Stay put for the next three, four years…don’t buy anything else,” he warns.
