What's the best way to sell my car if I still owe a lot on the loan?

Question

I bought my car a couple of years ago and have had 3 accidents, but all damages have been 100% fixed. Still, my car is only worth probably $3,000-$6,000 but I still owe more than $10,000. Is there a way I could sell or trade this car without being "upside down"?

Answer 1

First, I would get a real-world value for the car. $3000-$6000 is a very wide range. Edmunds is a good place to get a regional value for your car.

Second, you need to realize that you are stuck at this point. You can sell it yourself for more money, but you will still be stuck with the balance of the loan to pay off immediately. If you trade it in, you will get much less for the car and the balance of the loan will be added to your new loan. In 2-3 years you would be in the same position all over again except even more in the hole.

Your best bet is to keep driving it until it is paid off. Pay it off as fast as you can with as many principal payments as possible.

Answer 2

You CAN sell your car, but there is no "best way" (as you say) about it. You're going to take a loss in the difference of the amount of what your car is worth and what you owe.

It doesn't matter WHAT you call it. "Upside Down" is by its truest definition the situation that you are in.

Try to sell it privately instead of a dealer trade-in. You can minimize your losses a bit (Hopefully) if you find someone who isn't too educated in cars and is willing to give you more than what it's actually worth by a dealership's standards.

Answer 3

You are upside down, by 4-7 grand. If your credit will take the hit you can tack the price onto a new car. If not, drive it across the border into Mexico and leave the keys in it. The love bondo down there.