Overhaulin'

upside down in car loan. ?

I co-signed on a car loan for my son to get his credit established. Now Im stuck with the payment which i cant afford. There is a little over 2 yrs. left on the loan. Im upside down about $10,000. Whats the best way to get out of this loan

Public Comments

1. Well take permission from financer and sell the vehicle and clear loan with one time settlement.
2. Demand that your son make his car loan payments! You co-signed, but it is HIS loan.
3. Your between a rock and a hard place, if you let it go back, your credit is ruined and they still want the difference between what it sells for and what is owed from you. Your only option is to pay $10,000 out of your pocket and then sell the car for what is owed, and insist your son pay you back the $10 grand you're out.
4. They say that over 70% of the people who co sign get stuck with the payment. Sometimes its not easy to do like you said it was your son. There are cheaper ways to establish credit. Like have him buy a $100.00 for a mothers ring for mama. He can put $10.00 down and make sure to make the payments each month. That will give a track record, then a clothing store ourchse for some clothes. Thats the way I goy mine started. There is no way out of that loan that you now have. If he is unablr to make the payment. Maybe get rid of one of yours and drive that one. Upside down by 10K is kind of strange sounding. Unless it was some very high priced Vette or something like that. Maybe you could talk to the bank and have them add a year to the payments to make them lower. Sorry but you are stuck now.
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6. The only way to get out of a debt is to pay it. The reason it's upside down is you haven't paid what it costs to own the car. When the car is totally paid for, you'll be right side up. So - if you can't afford to pay the payments, which are obviously far lower than the real depreciation on the car, then the real cost of the car was far beyond your reach financially. Right? Don't do that any more. It's bad for the economy.
7. Sell the car and cough up the difference and pay off the loan. Get your son to help you with the negative equity end, it's really his debt.
8. The only way out of a loan is to pay it off. Why doesn't your son pay for it? If you're upside down by $10,000 you aren't going to be able to sell it or trade it in.