NEED Advice getting rid of a Financed Car!

Posted:
in AppleOutsider edited January 2014
I know what you are thinking, I'm an idiot, for being in this position in the first place! I know but please refrain from scolding me, I regret my current situation (my first car) but I need your honest advice to get rid of it, please!



Here's the scoop.



I owe $20,800 on the car. I looked on KBB for (Dealer Trade-In) and it's rated between $16-19K. I'm estimating $17K in fair value according to this. I currently pay $400 a month on the car and my main objective is reduce my installment to $220 by getting a GREAT USED CAR if possible.



Has anyone been in this situation, and if so, can it be done?



I don't want to make another big mistake



Appreciate your help

Comments

  • Reply 1 of 6
    floorjackfloorjack Posts: 2,726member
    You're under water on the loan so basically eff you. It used to be that you could roll the residual into the next loan you got but that was back in the crazy days.



    Eat your dog food, earn more money and when you can get away from it go for it.





    Barter or trade may be your way out.
  • Reply 2 of 6
    floorjackfloorjack Posts: 2,726member
    Repo may be your way out but that would nail your credit rating.
  • Reply 3 of 6
    nofeernofeer Posts: 2,422member
    yes when i was in a divorce

    sell your car to a local dealer, you'll get more than a trade in.

    take your lumps with the loan

    then buy a cheap used car from a private party

    i sold my metalic plum rose vette, and my explorer and bought a used 3 year old civic,

    took me about 14 months to get the "lumps" out the first lump was kicking my "ex" out



    think about looking up dave ramsey web site ( http://www.daveramsey.com )and you will get info and more stories worse than yours

    he can help with a plan, call him if you can.



    its a pain, but GET A PLAN and learn from this--, dave's books you can get at the library and keep away from the loan boogy man
  • Reply 4 of 6
    ilogicilogic Posts: 298member
    Quote:
    Originally Posted by NOFEER View Post


    yes when i was in a divorce

    sell your car to a local dealer, you'll get more than a trade in.

    take your lumps with the loan

    then buy a cheap used car from a private party

    i sold my metalic plum rose vette, and my explorer and bought a used 3 year old civic,

    took me about 14 months to get the "lumps" out the first lump was kicking my "ex" out



    think about looking up dave ramsey web site ( http://www.daveramsey.com )and you will get info and more stories worse than yours

    he can help with a plan, call him if you can.



    its a pain, but GET A PLAN and learn from this--, dave's books you can get at the library and keep away from the loan boogy man



    Dude, thanks a lot! Just knowing that it can be done, makes me feel better already.
  • Reply 5 of 6
    sdw2001sdw2001 Posts: 17,915member
    Quote:
    Originally Posted by ilogic View Post


    I know what you are thinking, I'm an idiot, for being in this position in the first place! I know but please refrain from scolding me, I regret my current situation (my first car) but I need your honest advice to get rid of it, please!



    Here's the scoop.



    I owe $20,800 on the car. I looked on KBB for (Dealer Trade-In) and it's rated between $16-19K. I'm estimating $17K in fair value according to this. I currently pay $400 a month on the car and my main objective is reduce my installment to $220 by getting a GREAT USED CAR if possible.



    Has anyone been in this situation, and if so, can it be done?



    I don't want to make another big mistake



    Appreciate your help



    So here's my question: Why are you getting rid of it? Why do you need to? My advice would be to try and suck up the payments for a bit, adding maybe $100 a month in principal if you can. Pretty soon you'll be even, at least.



    If you have to get those payments down, you could roll the 3K into another loan (possibly...it will depend on credit). You will won't halve your payments, though...but you MAY get them down $100 a month.
  • Reply 6 of 6
    Quote:
    Originally Posted by SDW2001 View Post


    So here's my question: Why are you getting rid of it? Why do you need to? My advice would be to try and suck up the payments for a bit, adding maybe $100 a month in principal if you can. Pretty soon you'll be even, at least.



    If you have to get those payments down, you could roll the 3K into another loan (possibly...it will depend on credit). You will won't halve your payments, though...but you MAY get them down $100 a month.



    Because he'd be WAY further ahead if he dumps the 20k car, eats the 3-4k he's upside down, then buys a $2000 used car with no payment plan.



    If possible, keep making payments (to yourself) into some out-of-sight - out-of-mind savings account. Drive that $2k car until it absolutely won't run anymore... with only a little luck, it'll last till you've got several thousand in that savings account... now you upgrade to a $6k car .... repeat the process... next time you've got maybe $10k to spend... now... 20 years down the road, you're able to pay cash for a brand-new Lexus (or whatever car you prefer.)

    You never have another (real) car payment for the rest of your life, but eventually you still get to drive a new car!
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