Overhaulin'

having 6200 left on original loan for car that is falling apart - ideas for gettig into a new one?

my brother has that balance left on his current car loan but has been approved for 20k for new car loan - don't want to carry over that much negative balance because that doesn't make sense to do. not worth fixing his current car - any suggestions?

Public Comments

1. There are not many good options with this much negative equity. One of the things he can try is to NOT purchase the next car. Lease it! He can then roll some of the negative equity into the lease and walk away from the money in say 2yrs. I would also suggest that with an amount this large he try and come up with a couple of grand to put onto the lease. This will only work if he is driving 15k or less per yr. It may be a much better option than buying another car and rolling over 4k into the next car. It is also essential that he buy something with good resale value and a solid quality history (like a Honda, Acura or Infiniti) so he can not be upside and have a repair bill in the next car.
2. The way you get out of a loan is always the same - you pay back the money. Try it, you'll love it! Your brother will like it too. When you borrow other people's money, you have to pay it back, with interest.