How do I get out of car that I'm $5k upside down on?

Question

I have a 2005 Camry which I pay too much for, and can't afford right now. I want to get out of it, but don't know how.

Answer 1

how do you get out of a car ???? Open the door. Haha just kidding!! You could always refinance your vehicle and get lowered payments, but the best thing to do would be to trade in to toyota itself for a corola or the yaris. echo even. Those arent to expensive.

Answer 2

The main issue is you can't afford the car.

You don't want to end up paying more $.

The answer is - You sell the car.
You're gonna need to find someone stupid enough to pay your asking price, of course.

Being upside down and trading for a new vehicle just makes things go from bad to worse. Your payment automatically goes up, and then you end up in a newer vehicle which you're already 5K upside down in + depreciation.

So don't trade it.

What you need to do is suck it up, the fact that you got your head knocked off by a car salesman.

Suck it up, just go home, wash your car, and fall in love with it all over again....

and make those friggin payments.

and stop crying.

Answer 3

If you trade in, they will just roll over the difference to your new not and your payments will be even higher. I had the same problem with an 05 Impala when I traded in my 02 Saturn which I was upside down. (Never fall for the $0 down gimmick, it will leave you upside down everytime.) My car eventually got repo'ed and I had to file bankruptcy. I hope that you don't have to go through that. But depending on your situation, it may be an option. Is there anything you can sell to pay off more on the car to lessen your gap? I used to hope it would get stolen, but alas no such luck.

Answer 4

yes..you can trade it in, sell it all those things. obviously if you trade it in will be rolling the negative in on the next purchse. your better off finding a car w/ big rebates to help eat up some of the negative equity for financing purposes. but remember your just going to be upside down on the next car you purchase. rebates are designed to help lower the cost of that particular car. they may help in covering up negative equity but the resale value of a car is also based on the rebates that are out there.

the best way to get rid of negative equity is to lease. do a 24 to 36 month lease. your negative equity is all taken care of up front and when the lease is over you start over fresh and dont have to worry about negative equity. the only thing you have to watch is miles and the shape of the vehicle. but remember, just as w/ a purchse you are adding the negative equity to the loan. since it is only 24 to 36 months it can sometimes raise the payments higher than what a purchase might run you, but its the best way to get rid of the negative equity.

Answer 5

About the only way is to go buy a NEW car and have the 5K financed into the new car. Haggle over a lower than 6% rate or go to your bank or credit union and get pre-approved for an auto loan, They will give good rates to people who ask for them...

Answer 6

I don't see why people are telling you to buy a new car. You'll end up paying more.
If you're in desperate straights, you can try to borrow the difference ($5000) from a relative or friend and sell the car, then pay back that relative.

Answer 7

your only options are to ask the finance company to refinance you. tell them your current payments are too high but you still would like the car but need lower payments. banks may provide a better loan.or someone else would be able to assume the note be sure the loan is taken out of your name and put into theirs as well as the title and registration so you will not be responsible. good luck!

Answer 8

You may be able to trade it in on another car, but if that isn't possible you may just have to pull a Larry the Cable Guy and wreck the car to get the insurance money to make the car payment...