I bought a new car last year and I cannot keep up with the payments. I still owe about $10,000 on it, and the trade in value is just under $7,900. How would I go about getting rid of the car and getting a used one to acheive cheaper payments? I would be doing this with less-than-perfect credit and no down payment. Serious answers only please, thanks!
2007-08-17 09:52:40 · 8 answers · asked by tinkerbell_pixy24 2 in Cars & Transportation ➔ Buying & Selling
It's a 2005 Kia Spectra LX, payments are $300 / mo.
2007-08-17 09:59:49 · update #1
You should try to sell it on your own. Put it in the paper and put a sign on it. This is the only way you will be able to get the 10,000 you owe.
2007-08-17 10:00:37 · answer #1 · answered by Sippy 4 · 1⤊ 0⤋
You should find a way to make the payments - get a second job or whatever it takes. Here's why: You are upside down in your loan, meaning the amount owed on it is more than it's worth. Anything LEGAL you do to get out from under the debt is going to cost you money and put you in an even worse situation.
1. Sell it. This is your best option, although unless you can sell for what you owe, the rest is going to come out of your pocket. You have to be able to pay off the loan to obtain the title for the new owner.
2. Trade it. Bad credit and no down payment aside, let's say a dealer gives you $6,000 for your Kia (if you're lucky). That leaves $4,000 you still owe the bank. They can roll that into a new loan for another car, but it's going to increase the amount of the loan by that much more and you are going to be in the same psotion you are today.
3. Stop paying for the car. You contact your lender and tell them your financial situation has changed and you can no longer afford the car. You turn it back in to them, they will sell it at auction for maybe $3500 and you will still owe them the $6500 balance on the loan.
There's no easy way out. You signed a contract promising to pay $300/month for however many years. You should honor your commitment. Your best course of action would be to earn extra money and pay your current loan off. You'll feel better about it, and it will help improve your credit for the next car you buy.
2007-08-17 17:33:13 · answer #2 · answered by Scott H 7 · 1⤊ 0⤋
first find out what the pay off on your car is. Then put ad in paper for you car for that amount. The pay off is always cheaper than what you owe on it. The banks will loan only low blue book on your car. So if the pay off is more than the car is worth you will have to find someone that can pay the diffearance on it. Then about buying another car. First know what you can afford to make a monthly payment on a car. Then go to dealer and see what car they can put you into for that monthly payment. Sometimes you can get your monthly payments with a payoff on you car as a trade in. With less than perfect credit a lot of dealers want a down payment. If you can come up with a least 500 you can get into a car that you can afford. Some dealers with a little bit of talking will let you make a 50/50 payment for the down. That means you would give them half of the down then 2 wks later give them the rest of the down. It all depends on what you want to do. Sell you car outright which you will get more money for than a trade in. Or just get your car paid off and get into something that you can afford. Good Luck
2007-08-17 17:27:01 · answer #3 · answered by cuppy 2 · 0⤊ 0⤋
I have a grandson who can take it for a little drive for you and total it. I gave him a car and in twenty minutes he had gotten into an accident and totaled it; walked away without a scratch. Then I gave him a pickup and he did the same darned thing. I can hardly wait for the granddaughter to get her license.
2007-08-17 17:25:42 · answer #4 · answered by acmeraven 7 · 0⤊ 0⤋
What I would do would be set a fire underneath the hood near the brake fluid box thats the most flamable thing under your hood and it would look like a short or something happened just say that your car had been over heating on you or that there must been a short or something........i know someone who did this and it was ruled a malfunction.
2007-08-17 17:01:42 · answer #5 · answered by Anonymous · 0⤊ 1⤋
I really am being serious, dynamite.
Insurance will pay much better than trade in value.
2007-08-17 17:00:35 · answer #6 · answered by Shwaa 6 · 0⤊ 2⤋
Hire an illegal, to take it to the country and burn it an collect the insurance.
2007-08-17 17:05:18 · answer #7 · answered by cfb193 5 · 0⤊ 2⤋
what car do you drive?
2007-08-17 16:59:17 · answer #8 · answered by Brian 4 · 0⤊ 1⤋