An Upside Down Car loan is where the balance you owe on the Car loan is extended than the payment of the vehicle. For instance, provided you owe fifteen thousand on the Car loan and the amount of the vehicle is lone ten thousand dollars, then you are upside down to the tune of five thousand dollars. So how do you get out of this? Well, there really is no direct way to get out of this, but if you are creative, you can reduce your car debt significantly in a short period of time. Here's how:
If you don't want to go through the hassle of selling and shopping for another car to reduce your upside down auto loan, then buckle down, save where you can and work to pay down and/or pay off your car loan.9. When you do finally pay off the loan, don't be tempted to buy a new car, unless you can get a really great deal on a new car and you plan to keep it for a very, very long time.
Kelly Blue Book is a terrific resource for finding the value of a car. You can generally get more bang for your buck if you sell it to a private individual rather than trading it in to a dealer, so select this option when selecting the options.
2. Fairly assess the condition of your vehicle. If the seats are stained from the kids and dogs, make sure you don't list the vehicle as 'excellent'. Most used vehicles fall in the category of good.
3. Faily assess the condition of your vehicle. If the seats are stained from the kids and dogs, make sure you don't list the vehicle as 'excellent'.
4. Once you have the value. Determine if you should sell the vehicle and opt for something much less expensive. For example, let's say in our above example, you determine that you can sell your vehicle for ten thousand. You sell the vehicle for ten thousand, pay down the loan ten thousand, you'll be left with a five thousand dollar balance which you will need to pay off or refinance. Now what?
5. Shop for another used car. You don't need the bells and whistles. All you need is reliable transportation. There are many used cars out there under five thousand. They may have a lot of miles on them, but you need to take a test drive. If you're not you can fairly assess the condition of the vehicle, then take along a friend who knows a lot about cars who can provide some professional advice on the car's condition.
6. Let's say you find a used Subaru for four thousand dollars. You car buddy checks it out and determines it's in fine running condition, considering it has eighty thousand miles on it. So now you have to come up with four thousand dollars. If your credit is good, you can get a loan, or consider borrowing the money from family and paying it back over an agreed-upon period of time.
7. Okay, so you're thinking, 'But I still have a car loan.' Yes, you do still have an auto loan, BUT your total debt is now nine thousand dollars versus the fifteen thousand dollars you previously owed.
8.
Instructions
1. Research the value of the vehicle.You're much better off purchasing a good used car and saving your money for retirement or the kid's college.
