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Help with upside down car loan, please

I'm upside down on my car loan. I owe $12,000 and the car is worth about $8,000. I'm at the point where I can't afford the payment. How can I resolve this situation? Any ideas welcome.

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Anonymous

Asked by Anonymous at 2:25 PM on Jan. 7, 2010 in Money & Work

Answers (6)
  • Try to sell it. Maybe someone can take over the payments? May be ask.com has an answer? OR ask Suze Orman maybe? Good luck.
    Anonymous

    Answer by Anonymous at 2:26 PM on Jan. 7, 2010

  • Thats a tough situation, we were like that for a bit too. Can you trade it in and get lower paymets? i mean your loan might still be upside down but perhaps with a large down payment the actual payment would be lower?
    82ndairbornewif

    Answer by 82ndairbornewif at 2:37 PM on Jan. 7, 2010

  • If you dont want to sell it, you could trade it. But you're going to have $4,000 to tack on to your new car...so you'll have to get a cheap car...maybe like a $2,000 car--then you will have your $4,000 tacked on....so loan amt will be $6,000 instead of $12,000. Which should make for a cheaper payment.
    hw1977

    Answer by hw1977 at 2:37 PM on Jan. 7, 2010

  • Call the loan company and ask if you can make interest payments for a couple of months so you can get caught up, if it is a good car and you need one,,,you really can't let it go back to the bank, then you will be without anything! Can you budget anything out to make the payments? I know DH was in the same situation, but we managed to cut enough out to make it! I would do anything you could to keep a reliable car. If you don't need the car, you might be able to find someone to take over the payments, but you will still be responsible for them so make sure it is somebody you trust very much!!
    kimigogo

    Answer by kimigogo at 2:40 PM on Jan. 7, 2010

  • I didn't know making interest only payments might be an option... I'll try calling the bank. I do need the car, because if I loose it I have no way to get anther. Also, I never thought about buying a less expensive car, then including the upside down part. Maybe I'll call a few dealerships and see if that's an option. Thanks.
    Anonymous

    Answer by Anonymous at 3:12 PM on Jan. 7, 2010

  • PS I don't know if you work outside the home, but perhaps taking someone you work with for a fee to and from is a possiblilty? Or someone who works nearby and doesn't have a car? My BFF takes a woman around on Saturday for a couple of hours to help with shopping, banking etc,,, and gets $60--that would be almost $200 a month, many elderly rely on cabs, that cost much more than this! I wouldn't trade down for a less expensive car,, your likely to have bigger maintanence expenses that come with it! Good luck Mommy!
    kimigogo

    Answer by kimigogo at 4:41 PM on Jan. 7, 2010

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