Cant afford car payment, options?

Question

I financed a car for 18k a yr ago and now owe 15k currently. The payments have gotten too high for me ($380/month) and I would like to get something different with a smaller payment. What are my options? I would prefer to stay away from private selling. Also the car is valued at 11k trade-in and 15k suggested retail. Help please!!!

Answer 1

you're screwed.
bottom line is , you still owe 15k.
if you try to trade out and lower payments it's very hard to do. It CAN be done, but you can't be picky about what the dealer offers for a car. it's a numbers games based on many factors. the sales managers know how to structure a deal to present to the banks. and if they can reduce your payment, it may not be a significant amount.
The private sale is the best option for getting the most for your car, but a difference between sale price and payoff has to made by you.

Answer 2

well if you try to trade the vehicle you have at least a 4000.00 negative equity to deal with. Unless you are prepared to make that up out of your pocket that will have to be attached to your next loan which will make it very hard to lower your payments on just about anyhting. You can look for a new vehicle that may have big cash rebates and or dealer incentives to help you erase your neg equity. If you can privately sell the car for 15k that wold be your best option and then you could start fresh. you may talk to your bank and see if you could get it refinaced at a lower interest rate....but with only a 9-10 loan value that might be tough unless you have an exceptional credit rating. If payment is your only issue or concern there are lease options as well, however, before you enter into a lease read the contract carefullly, know exactly what your getting into. it sounds like your in a tough spot and may be real difficult to lower your payments without some cash out of your pocket....Good Luck.

Answer 3

Have the payments increased? You stated the payments have gotten too high. My suggestion is for you to get a second job and keep making the payments. You are upside down in the loan and the value of the car is less than the amount owed on the loan. If you sell it, you are going to have to come up with the difference to pay off the loan. If you let the bank repo the car, you will owe the difference between what they sell it for and what you owe. You signed a loan contract, knowing full well what the monthly payments are. Your best move is to live up to your obligations.

Answer 4

Being that far out of equity you really have no options. Most places will not finance a car for 4K over the selling price and if they did you would be even worse off and the payment possibly higher than what you have now. Call the place you financed with and see if you can refinance for the same or longer term you had before, you will still be out of equity, but possibly make the terms affordable.

Answer 5

Did the payment amount of the car increase over time? If it did and it is not part of the contract ageement then the dealership has to pay for the price of the car because it is against the law to raise the payment amount after the contract has been signed.

Answer 6

consider a small new car , stay cheap and a lot of options this helps the new car dealer lie to the finance company about how much the car is valued at 08 if possable.these are not in any price guide book yet so the value is determined on your credit score.

Answer 7

about the only thing you can do is sell one of them and hope to make a profit and buy a good used one,there's no reel fast way to fix that situation ,something has to go,but if you sell one and get it paid for,then you might could find a good used one you could pay cash for,if you trade it in you might come out on it,and get a cheaper car ,with cheaper payments also,good luck with it.

Answer 8

refinance.

here is a website... try the e-loan they have good intrest rates and could bring your payment down

http://www.freewebs.com/nohassleloan/