What options do I have for getting out of a car loan?

Question

I financed a 2001 Ford Focus for $7,000. I owe about $6,300 on it right now. I have a one year old and I'm not going to be abel to work anymore, so I'm not going to be able to afford the car loan. What options do I have? I thought of trying to sell it, but I'll never get $6,300 for it I don't think. Probably around $4-5,000 or something. Help! I need to figure something out so I can get rid of this car payment!

Answer 1

What you are referring to is voluntary repossession. Contact your lender and tell them you cannot pay for the car. They will take it and wholesale it to a dealer. The difference in what the dealer gives them and what you owe will be your responsibility. You can refuse to pay it and the bank will charge it off but your credit will take a major hit. You can arrange to pay the balance off at much reduced terms and your credit will take a minor hit.

Answer 2

I would say your options are to sell the car and then add extra money to the loan to pay it off. The other option would be to talk to the people that hold the loan and see if you can refinance it for a longer period and pay less per month but have to pay for more months. This will cost you more in the long run, but if you need the car, then it may be your best option. Finally, you could find another scource of money at a lower interest rate. good luck.

Answer 3

Get a personal loan for the $1300-$2300 differance then you acn sell it and use that to pay it off. Aslo you may try and let someone you know take over payments. If you let the car go repo(even if you turn it in its a repo) you will pay high interest rates for years to come. And it will usually cost you more than the $2300 personal loan, not to mention the headaches. Good Luck

10 yrs in auto biz

Answer 4

Do you have good insurance? If so, if it so happens that the car gets stolen or wrecked then your insurance would pay it off.