I can't afford the $650 month car note for next 4 years. Owe $29K, blue book value approx $20K-23K. Approx $8000 upside-down. Do I grit my teeth and keep paying or sell and still owe $8K? I can't afford to borrow $8K either nor do I have cash to buy another car. I want to be debt-free. Will never make this mistake again. Appreciate your help.
2006-10-30 12:30:24 · 3 answers · asked by tagsfan 2 in Cars & Transportation ➔ Buying & Selling
If you refinance you may be able to get some breathing room. However do not take out a second loan to remove the negative equity. then all you have is a $650 payment with another additional payment you have to make to cover the 8k you borrowed. If you are borrowing refinance the whole amount. perhaps your bank can assist you in lowering the monthly payment to something more manageable. This happens to a lot of people... if you sell it out right you might get enough to pay it off if not you will have to make up the difference in what is owed. Also look and see if you have any cancellables... and maybe find a car with huge rebates. It is the end of the year... you may not get what you want but you can get out of $650 per month. Good luck.
2006-10-30 12:38:54 · answer #1 · answered by lastepmom 2 · 0⤊ 0⤋
good answer above, see if you can refinance it to bring the payment down, remember what you owe is based on the whole amount including finance charges, when you refinance you will find the real payoff. when your upside down the best thing to do is grit your teeth because if you try and trade it in you will already be upside down in the new vehicle because the take the negative balance and add it to the new vehicle price. hopefully you have room to raise your finance charge to get a new loan and get an open end loan which means more of your money goes to the car and not finance charges. a closed end loan pays more to the finance company (i believe i have this right) tough lesson, been there before, good luck
2006-10-30 13:13:27 · answer #2 · answered by Christian 7 · 0⤊ 0⤋
You have answered your question. There is no easy way out of this mess. You lost 10% of the value of your car the second you signed the paperwork. Always buy good used cars and always pay cash if possible, let some other dope take that value hit. Try www.daveramsey.com. This guy is great and there be some more information in his books that can help ease the pain.
2006-10-30 15:16:23 · answer #3 · answered by Anonymous · 0⤊ 0⤋