What's the best way to get out of a car loan. I owe $8,000 over the trade in value Thanks!?
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With that much negative equity you won't be able to trade, unless you have a substantial amount to put down. But if you have that kind of cash lying around, you probably should sell the car outright for as much as you can, pay off the difference, then go to a dealer with the rest of your cash and negotiate a no-trade sale. Those are the best deals anyway. If you don't have $5000 or so to use, your best option is to double up your payments and lower the principal. It might take 18 months or so to work your way into a position where you can trade.
good luck
What's the best way to get out of a car loan. I owe $8,000 over the trade in value Thanks!?There is no way to get out of it persay. Your best option is going to be to roll it over into a new loan. For example, you trade-in your vehicle...deduct that price from the new car, add the remainder of your existing loan (loan company will pay it off in full immediately) and your new payment will incorporate the leftovers.
An $8k rollover should merit an additional $110 - $120 on your car payment. So if you buy a $20k vehicle and finance it for 5-6 years at a decent interest rate expect to pay around $400 - $450 a month. Do your best to keep the new vehicle maintained, pay it off in full prior to changing vehicles again...1 rollover is manageable, after that your payments will get out of control!
You may also consider selling your vehicle outright (you'll get more than trade) and applying it towards the current loan. You'll want to have an arrangement setup with the dealer in question first to ensure you'll be getting into another car right away! This could lower your payments another $20 - $40 a month.
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