If you can't afford the payments on your car.?

Question

I've only had my car for 4 months and I financed it. I'm having troulbe making the payments due to other bills. Can I trade my car in and then finance the remaing amount of money? is there a penalty to this

Answer 1

You need to look at the payoff value. It might be more than the car is worth. Look at re-financing it on a better rate or longer term.

Answer 2

it all depends on if you leased or bought. No matter what if you take it back to the dealership they more than likely will give you less than what is owed on it, so getting into a cheaper vehicle will not matter cause the balance will be carried over. If you bought the car you can try selling it privately and see what you can get for it. I know getting out of a lease is next to impossible and you can get a penalty for doing so.
you really should re check your budget and see if you can some how keep the car and not end up damaging your credit.
best of luck

Answer 3

trade it in for something far cheaper and roll the remaining payments into your new car payment. If you do this tho, your payments will probably still be as much if you didnt trade it in.

If you cant find someone to take over the payments, you need to re-evaluate your budget and cut needless spending.

Answer 4

Can you take out a loan on your 401K and pay off the car? This way you pay yourself back right out of your pay and the interest you would've paid the finance company goes into your account.

I saved $4,000+ this way when I paid off my mortgage.

Answer 5

You will lose your socks so to speak, you might see if you can find someone to take over the loan for just what you owe