I have a car loan for 17000 and the fair market value of my car is around 13500. I am trying to run through some options on this, I have thought about dumping this for a cheaper car and having the difference rolled into the other loan, but I would still be upside down....considering refinancing, but i am unsure of how that works when you are upside down on a car loan, if someone could help me with this, I would appreciate it. The current rate is 9.3, I think. My credit is so so, I have 4 credit cards, this frikken loan and a small student loan, I don't have any charge offs or anything like that, the only thing that is hurting me is my debt to equity ratio. Anyone have any advice? One more thing, I will have one of the credit cards paid of next week and another paid of mid august....
First, where did you get this estimate for your car? You should EXTENSIVE research and find out what a car (identical in every way) REALLY sells for. Look in newspaper classifides, auto magazines, used car dealers, etcetera. If you have already done this, then great...If you got this quote from a salesman, do the proper research. That's excactly right. Let's say the car sells for 14k...that leaves 3k to clear the title. So you are correct that you would still be upside-down. I don't know you motive for wanting to dump this car, but here is a suggestion (if in-fact your car can sell for 14k). Try to take-out a loan at a CU or bank for 7k. Sell your current car and add 3k of the 7k to it to clear the title for the next owner. Take the remaining 2k and buy a car that will get from A to B. You have turned a 17k debt into a 7k debt and still have a car. Just my opinion in trying to help. If the loan doens't fall-through, you can do 1 of 2 things: Keep the car... Do everything you can to come-up-with the balance and then sell it. Hope you sort it out...good luck.
