That is called being upside down. The best way to get rid of it is to sell the car and just add the difference. If you trade it in they are just going to roll the difference in your new loan. I have learned that it is better to always pay a little extra monthly when purchasing that way you won't have to lay down a lump sum when you sell or become upside down. Remember cars depreciate fast!
Example:
You owe $10K on the car
Your highest offer on it is $8K
You have to add $2K to rid your self of it.
It has turned out that way on my last 2 vehicles. I just sold one last week and had to add $700 to get rid of it. Now I drive a 94 Cavalier with only 50K original miles. It works for me!
Negative equity in a car resolves itself in time. You've got to drive something, right? You liked it when you bought it, right? It's depreciating more slowly than when you bought it, and it's depreciating more slowly than you're paying it off. Don't start hating the car, just ride it out.
I’m going to assume you have another car you can drive and you can make the payments on both cars if need be. Why not “sub to” the car. Become the bank.
If you owe 10K
Worth 8K
Payments are $200 or what ever.
Get 5K down
And pack your monthly payments.
Put a no qualifying loan on the car.
Get creative
In the event they default on the car loan, take the thing back and do it over again.
Or……..just ride it out.
PS, if you have a HP 12C or another mortgage calculator, play with it until you can structure something where you make a couple of bucks.
That is called being upside down. The best way to get rid of it is to sell the car and just add the difference. If you trade it in they are just going to roll the difference in your new loan. I have learned that it is better to always pay a little extra monthly when purchasing that way you won't have to lay down a lump sum when you sell or become upside down. Remember cars depreciate fast!
Example:
You owe $10K on the car
Your highest offer on it is $8K
You have to add $2K to rid your self of it.
It has turned out that way on my last 2 vehicles. I just sold one last week and had to add $700 to get rid of it. Now I drive a 94 Cavalier with only 50K original miles. It works for me!
Negative equity in a car resolves itself in time. You've got to drive something, right? You liked it when you bought it, right? It's depreciating more slowly than when you bought it, and it's depreciating more slowly than you're paying it off. Don't start hating the car, just ride it out.
I’m going to assume you have another car you can drive and you can make the payments on both cars if need be. Why not “sub to” the car. Become the bank.
If you owe 10K
Worth 8K
Payments are $200 or what ever.
Get 5K down
And pack your monthly payments.
Put a no qualifying loan on the car.
Get creative
In the event they default on the car loan, take the thing back and do it over again.
Or……..just ride it out.
PS, if you have a HP 12C or another mortgage calculator, play with it until you can structure something where you make a couple of bucks.