Can we get out of this?

Question

Almost 2 years ago my husband and I bought a "used" 2005 Grand Caravan. Long story short... we pretty much got taken by some fast-talking salesmen. We thought we learned out lesson. Because of other unforseen circumstances in our lives, we can not afford to keep paying on the van. We still owe more than what it's worth. We know that there is no way we can sell this and make any money, and selling it privately (like through an ad in the paper) won't get us the amount we need to get rid of these payments, and we can't just trade it in for something else because we would end up with a newer vehicle and just as high of payments. We also recognize there is NO WAY we can make any money off this. Is there another way we can get out of this? I'd like to be able to just walk away. We seriously can't afford the payments in any way, shape, or form. Any advice? (And please, no rude answers. I'm serious here. I want actual advice and no "I told you so" kind of answers!)

Answer 1

A lawyer or consumer affairs may help.

Answer 2

I like to be serious also and I pick valid questions in this forum VS silly questions ( yours is valid ), after reading your question the first thing that entered my mind was you put very little down payment, or your credit score is very low being stuck with high interest rates, that can be the only reasons for you being way up- side down after 2 years, and lets not blame it on the fast - talking salesman, you should have done some homework before you entered a dealership, I know you dont want to hear I told you so, but its an answer that next time you buy homework becomes the first step buying a car.

Now sure you can stop payments have a repo and your credit will be wrecked for a long time which is not the answer, trying to put myselv in your shoes I would contact the lender or shop around for new financing for a longer term to lower my payments, being a 2005 model you can qualify for up 84 months by re- financing and should make your payments more affordable, the trick is here to try and pay of the loan in 48 after that your up- side down again.hope this helps

Answer 3

Depending on how "upside down" you are. You might be able to get out of the car and into a new one. First call the bank and find out what your payoff is. Then get an estimate of its trade in value by going to kbb or edmunds. That will give you an idea of how much negative equity you have to deal with. You now need to find an affordable replacement that meets your needs. Try those same websites for your research on the replacement vehicle. Remember to think affordable (Kia, Hyundai) I would suggest since you don't seem to have to much disposable income for a down payment and some negative equity you should consider a lease on the replacement. It will allow you to eat up some of that neg equity and not feel it as much in your monthly payment. A lease also doesn't require to much out of pocket to get into one. I'm not sure if it will work it, all depends on how "upside down" you are. Good Luck

Answer 4

I would try to find a small apartment where you could both walk to work. That would be in a big metropolitan area where there's a lot of jobs close by. Also look for lots of goods and services close by so that you can walk to the supermarket, bank and doctors etc. Then you won't have to rely on your car for transportation. In the mean time, your husband should take up auto repair as a hobby like I did years ago. You'd be amazed how many things you can fix yourself with only a basic set of inexpensive tools. He'll need an auto parts store close by too!

Answer 5

Advertise it as a payments vehicle on Craigslist.com.

Offer a cash incentive, something like $500-$1000 to garner interest.

Then contact the bank and tell them you want to transfer the loan and they'll send you an application. As long as the buyer has good credit it should work out.

Answer 6

1) Well, you can either trade the vehicle in for a older model with lower payments.

2) You can sell it privately and the amount you owe to the lender you can either open up a line-of-credit from your bank at a lower interest rate or even a home equity loan and payback what you owe when you can.

Good luck

Answer 7

Well you could always trade it in on an older model vehicle. Try to refinance what you currently have with the purchase of another vehicle. If you don't need another vehicle, then you need to talk to another finance institution and consider refinancing your loan to a more affordable payment.

Answer 8

Trade it in on the CHEAPEST Corolla out there. Yes, you will be paying for a long time, but your car will last a long time if you service it regularly. Ten years from now, if you have learned anything, you can start thinking new car again.

Answer 9

try to refinance it for a longer period, this may lower you payment and it might be some help, i did this and it lower it 80.00 dollars a month. you could try and sell it what do you owe?

Answer 10

the only to get out of it is take the van back keys in the ignition tell them you dont want the vehicle anymore it will reflect and affect your credit report but if yours is like mine its shot anyway thx good luck

Answer 11

File bankruptcy I did a Montana,s computer problems drove me to it.