<prompt> Human: Hi there,My husband purchased a car at the beginning of the year that now has a bad transmission. We owe 20K on it, and carmax says theyll give us 5K for it. So were looking at negative equity of about 15K. The interest rate on this loan is 3.49 if that matters. It is a 2008 luxury SUV. Edit: I think wed both like to say goodbye to this car, live and learn, and get something more suited to our family. I have a 2013 RAV4 that is paid off. We have a baby and 3 dogs, and like to take road trips often, so my thought is that we should get a full size SUV. Specifically, a 2012 Highlander or Pilot. From looking at AutoTrader, this type of vehicle will cost around 25K not including taxes.We currently have about 70K in liquid assets - 50K in our personalsavings, and 20K in money hes earned from his side business. We both have excellent credit.So were wondering what the best way forward is. Advice? Additional information needed? Better sub to post this to?Thanks for your time:Assistant: How much is the car worth with a working transmission?Human: He did not disclose that there were issues with the transmission. Its not gone out just yet, but our mechanic says its a bad situation and we need to make a decision soon. So I assume 5K?Assistant: So with a perfectly working transmission, your car is worth 5k on a good day, and you owe 20k on it? How did you end up in this situation?Human: I dont know the mathematical breakdown, but my understanding is that the sticker price of the car was 14,500. He said that after taxes and purchase of a warranty, the loan came to 20k. He said the warranty does not cover transmission problems.  <response>: He said the warranty does not cover transmission problemsWhat the hell does it cover? Powertrain warranties are usually the longer ones 