Melissa in St Louis Posted July 2, 2009 Share Posted July 2, 2009 We owe more on our car than it is worth and have a Huge payment each month. (Not to mention we get terrible mpg.) This payment is sucking us dry! How can we get rid of this car when we still owe on it and get something else to drive (nothing fancy) with terrible credit? (Credit terrible due to opening own business.) Any thoughts?:bigear: Quote Link to comment Share on other sites More sharing options...
Chris in VA Posted July 2, 2009 Share Posted July 2, 2009 That sounds so frustrating. Can you sell off some other items or hold a few garage sales to help out? If you can pay a chunk off the loan, would they renegotiated a smaller payment? Is there a hardship payment you could see if they'd give you? (I did that with my credit card--got the interest knocked in half)? Could you get more for it if you sold it yourself thru AutoTrader or the newspaper? You'll probably have to settle for something very small, old, and high mileage. Quote Link to comment Share on other sites More sharing options...
SquirrellyMama Posted July 2, 2009 Share Posted July 2, 2009 Is it possible to sell the car and have a smaller payment and get a "garage sale" car (as Dave Ramsey says) and still have a lower payment than the car you have now? Not sure what to do about the bad credit part. Are you part of a church? Is there anyone there that can help. We once sold a very useable car to some church friends for $200. They wouldn't take it for free so we made it a low price. They drove it for several years. If you could do that then you can sell your current car and get a small loan to cover the difference. It might be possible to get the smaller loan with the people who already hold your loan. Kelly Quote Link to comment Share on other sites More sharing options...
kah Posted July 2, 2009 Share Posted July 2, 2009 Just thinking, still- how much longer do you have on the car loan? Quote Link to comment Share on other sites More sharing options...
KingM Posted July 2, 2009 Share Posted July 2, 2009 I've heard of people selling off a car with negative equity and then making up the difference out of pocket. I know this sounds painful, but it might be a better financial decision that suffering under high payments for several more years. Quote Link to comment Share on other sites More sharing options...
Beth in Central TX Posted July 2, 2009 Share Posted July 2, 2009 With bad credit, you might have to ride this one out until the car is worth what you owe. Typically, you would get a loan for the difference between what the car is worth and what you owe plus a little money to buy a cheap car. For instance, you owe $20,000, but the car is worth $17,000, therefore, you take out a loan for $5,000-$6,000 ($3,000 for difference plus $2,000-$3,000 for a car that drives). Since you have credit issues, a local credit union might work with you if you go in and talk with them one-on-one. Quote Link to comment Share on other sites More sharing options...
ciyates Posted July 2, 2009 Share Posted July 2, 2009 Call your bank and try and renegotiate with them. Even with bad credit people are being offered help with their rates. Also if your credit is really bad you may have nothing to lose if you call them and tell them to repo it. It just depends on how bad your credit is and if you need to use your credit anytime soon. You could also go to anyone of the local car dealerships and be very upfront with about how much you owe and how bad your credit is. They still maybe able to get you in a newer car with good MPG at a good rate. The worse than can say is no. A friend who has a fairly new bankrupt on her credit took in a very large SUV and came out with a Hyundia elantra. Her payments are half what they were and it gets great mileage. Quote Link to comment Share on other sites More sharing options...
Mommyof4ks Posted July 2, 2009 Share Posted July 2, 2009 Could you try to sell your car privately (cars are worth more from a private seller than a dealership) and then find a car you could pay cash for? We paid about $1000 for our first car and it ran for a bit over a year. Quote Link to comment Share on other sites More sharing options...
kah Posted July 2, 2009 Share Posted July 2, 2009 Could you try to sell your car privately (cars are worth more from a private seller than a dealership) and then find a car you could pay cash for? We paid about $1000 for our first car and it ran for a bit over a year. Can you do that if the loan isn't paid off? I think the bank holds on to the title until the car is paid for- without the title, you can't sell it. At least that's how it's done in this state. Quote Link to comment Share on other sites More sharing options...
TraceyS/FL Posted July 2, 2009 Share Posted July 2, 2009 (edited) Can you do that if the loan isn't paid off? I think the bank holds on to the title until the car is paid for- without the title, you can't sell it. At least that's how it's done in this state. You can sell it privately - even if they hold it, if they are getting a loan the banks/financing places - are used to working together. If they just bring a check, the bank can order the title sent to the branch, then deals with the paperwork when you go there. Always call/go in and find out how to go about it obviously. It's not a big deal - gosh, i hope people don't think they can't sell privately because they have a bank loan :( eta: and often, a payoff is lower than the balance you see monthly because of the way car loans do interest. Can't hurt to call and find out what the "payoff" is. Edited July 2, 2009 by TraceyS/FL Quote Link to comment Share on other sites More sharing options...
Melissa in St Louis Posted July 2, 2009 Author Share Posted July 2, 2009 I'll call the bank and dealership and see what they say. Thanks! Quote Link to comment Share on other sites More sharing options...
kah Posted July 2, 2009 Share Posted July 2, 2009 It's not a big deal - gosh, i hope people don't think they can't sell privately because they have a bank loan :( No- that's OK. I just never really thought about it. I've just always kept my cars a really long time and gotten pretty good trade-in credit each time I've sold, so I haven't had to deal with it much, fortunately. Quote Link to comment Share on other sites More sharing options...
LMA Posted July 2, 2009 Share Posted July 2, 2009 Just one thing, even if you sell the car, you still must pay off the entire loan before the bank will release the title. So you may have to make up the difference between the selling price and the actual balance of the loan. Quote Link to comment Share on other sites More sharing options...
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