I am upside down in my car loan and really want to get out of it. Any advice?

Question

Trading my car in several times over the last few years has finally caught up with me. I want to get something cheaper but of course can't roll in all that negative equity. Any advice would be awesome.

Answer 1

That's a really tough one. What you don't want to do is just walk away from it, defeated, and ruin your credit in the process. Then in will be hard to get a loan in the future. The best you could really hope for is to sell your car as a private party, getting every dime out of it that you can. Dealers have to make a profit, so they give you a low trade in value. Get what you can, and then make arrangements with your finance company to pay off the balance. You may want to check with the finance company first about what procedures to follow before you sell, so you don't get caught up in something financially that hurts your credit. Another solution would be to just borrow the difference between the blue book value and what you owe, so when you sell it as a private party, you can pay off the entire balance at once. When you call your finance company, you may want to speak with someone in customer relations, rather than just customer service. (Kind of an elevated level of customer service that most people don't know to ask for.) The first line of reps that answer the phone may not have to right kind of advice for you. Good luck.

Answer 2

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Answer 3

Well, like the other answerers said, you're basically stuck.

Your only choices are to keep paying and driving your current car, make a big payment to catch up, or trade it in for a cheaper car, and be upside down in that one too. Hopefully, if you do that, your payments will be cheaper.

If you do trade it in, make sure this new car is one you'll keep for at least the life of the loan, so you can catch up.

Take this as a life lesson about the personal costs of always having to have the latest thing.

Answer 4

Usually once you're upside down, there's no way out except to keep the vehicle and pay it off. The other person didn't explain what GAP is, but it is insurance that covers you if your vehicle is totalled - it will pay what you owe, not what your vehicle is worth. This would be a good thing for you to do just in case.

Answer 5

The undesirable information is which you will probable pay for the damaging fairness no remember what you do. one factor that some vehicle sellers do is to show you how to commerce in surprisingly a lot regardless of motor vehicle you have in direction of a clean vehicle and could pay off your different own loan. the subject with this one is that the broking will roll the version on your motor vehicle into the hot own loan, so which you nonetheless ought to pay it. the only way this might help is that the indoors maximum loan on the hot vehicle could be at a decrease pastime cost. The undesirable component of that's which you will nonetheless have a damaging fairness interior the hot vehicle, and could proceed to accomplish that, till and till you pay off the subsequent own loan and the motor vehicle continues to be doing good provider for little maintenance for it sluggish once you pay it off.

Answer 6

Have some one take over the payments. You may have to put in to reduce its monthly note. Offer to reduce the monthly payment by 50$ with no money down. Its better than paying full amount each month. Take it at a loss and move on.

Answer 7

Hey, I'm in the same boat! You pretty much have to suck it up and pay down on your current car. DON"T TRADE!!! I learned this the hard way!

Answer 8

Can't really do much. Just keep paying it down and STOP TRADING YOUR CAR IN!!!!

Answer 9

Three letters GAP....

Answer 10

you should report stolen and burn it. lol