Help! I am seriously upside down with a new car and need help!?

Question

I currently reside in Phoenix, Arizona. I have poor credit and my fiance does as well. We bought a vehicle a few months ago and are deep into negative equity by 10K. Is there any company that would refinance our car with only showing 3 payments made on it? Would they refinance with poor credit? Does any one have any suggestions on how to get out of situation? My car payment is over $700.00. Any help would be great. I didn't realize what a mess we were in until today when I spoke to a dealership.

Answer 1

You don't have alot of options. Best way out is to find out how much you can sell it for as a private sell. Sell it for as much as you can. You'll need to find some one to loan you the difference between what you can get and what you owe. Include in the loan 1k extra for basic used transportation. It won't be cool but you've got to start digging out of this hole. Don't trade it a dealer; you won't get as much for it. Also Don't give it back the original dealer. They will sell it for less than you can and then come after you for the difference.

You might want into a part time job to help dig out of the whole a little faster.

Answer 2

Plan A:
1. Check to make sure you have GAP insurance as part of your insurance policy
2. Fasten your seat belt!
3. Total your car
4. No more car, no more debt

Plan B:
1. Check to make sure you have GAP insurance as part of your insurance policy
2. Have a VERY GOOD reason for being in a really bad part of town (perhaps overnight)
3. Leave your car parked on the street in a dark area, and leave it unlocked.
4. If your car is never found, it's gone, and the insurance pays it off. No more car and no more debt.

Disclaimer: Of course, both these methods constitute fraud and are illegal, so I wouldn't actually do either of them.

To keep yourself on the "just visiting" side of the steel bars, work to improve your credit. You can try to refinance your car, but if it's only been 3 months, you probably won't get a much better interest rate. Also, try going through a Credit Union.