I have a car with 16,000.00 in negative equity can anyone help me?

Answer 1

You don't need to worry about negative equity unless you are trading or selling your car, or the car gets totaled out or stolen.

In the first case, the solution is simple: Don't sell or trade your car. Suck it up, and pay for it. Get another job if you have to, and start paying double on the car. DO NOT make double payments. For example, if your note is due on Sept 20'th and is supposed to be $500, do NOT send Sept's and Oct's payment of $500 each. INSTEAD, send a check for $500, along with SEPT's payment ONLY, and then include a second check for $500, and write on the check (in the "For" blank), in big bold print, "PRINCIPAL PAYMENT".

By sending in 2 month's payments, you WILL pay the vehicle off faster. HOWEVER, by sending in double of one month's payment, you will pay it off FASTER, and save money in interest payments.

If you are worried about, or in a situation where the vehicle is no longer in your possesion (totaled or stolen) and you are concerned about NegEq because of what the insurance company will pay vs. your loan amount, then the phrase for the day is GAP protection. It's sold through your lending institution, and will cover that spread. Didn't get it? ouch. Maybe you will next time.

Next time, before you buy a vehicle, SLOW down, STOP even, and then THINK about what you are doing. Learn your lesson here, and learn it well. RESALE value is highly important. Buying a vehicle becuase it's cool isn't a good enough reason to buy one. A car is to get you from point A to point B. Only the wealthy and financially secure (own a house w/o a mortgage and are putting money away for a rainy day, plus college for the kids, plus retirement) can do this. Until then, you have to be smart about what you are buying.

Not sure? Don't wanna get burned next time? Then just follow what other smart people are doing and buy Toyota or Honda. There is a 30 point difference in the average IQ's of Toy/Honda buyers and Dodge buyers.

Answer 2

I'm going to make a wild guess that it's an american made truck or suv? We better call a spade a spade here. You were an idiot for buying without doing any research as to resale value. The only realistic thing you can do is drive it untill you have paid it down enough to sell. The only people who would take that as trade are the american mfg's and they will put you right back in the same boat. It's unfortunate, but American vehicles don't hold their value at all. They may be cheaper to buy, but you now know that you pay dearly for it in the long run.

Hope you figure something out.

Answer 3

You're pretty much stuck. If you don't have the money to trade it in on something more cost-effective, you'll have to run it until it dies. Selling it now will take $16,000 out of your pocket. Unless you wreck it, it has already taken the bulk of the depreciation, so there's no financial value to selling it now.

Next time, do some research on the resale value of the car before you buy it and make sure you can take the hit.

Answer 4

How in god's name did you get that much negative equaty? If hte car was wrecked insurance would take of it, providing you had some and if you managed to lose 16K by your own means of not taking care of the thing, you just learned a valuable and expensive lesson. There is no good legal way to get out of this one.

Answer 5

Get a $16,000 home equity loan and pay off the car.

Answer 6

There is a place called finance recall. 1-888-3-LOW-RATE. They can lower your payments, or find you a better vehicle. Otherwise, I would suggest trading down in a big way.

Answer 7

Is the car wrecked? Is it totalled? Did you drop the insurance prior to this happening?

Answer 8

hope it gets stolen and you have gap insurance

Answer 9

No one can help you.

You are screwed.

Answer 10

your out of luck