Overhaulin'

I have an upside down loan on my 2008 chevy cobalt, is it be possible to trade down a couple years to lower?

I bought the car new in Dec 08....governor cut the budget to my job and am now laid off ... need to lower payments and need help.. the date of purchase was Dec 07...sorry

Public Comments

1. Yes it may be possible and it may cost you a lot of money. Here's the deal... you owe more on the car than it's worth. That's called negative equity. In reality, you probably owe anywhere from a few to several thousand dollars more than it's worth. You didn't provide any numbers, so I'll just go off the cuff here. Assume you owe $13,000 and the trade-in value of the car is $8,000. That's $5,000 negative equity. When added to the new loan on the new car, you end up owing as much or more than you do now and your payment is as high or higher than what you currently pay. That's paying interest on interest and it's a waste of money. Seriously, your best bet is to keep the car you have and keep making payments on it. Get another job, trim your expenses, do what you need to do to pay for it. You really aren't in a position to be trading cars right now.