Overhaulin' - How can a person get out of a car loan with negative equity?

How can a person get out of a car loan with negative equity?

In April of 2006 I bought a brand new Nissan.In the loan there was a negative rollover of $3,000, so the total amount of the loan ended up being $21,000. I have it paid down to $18,900 but I'm finding the payments way out of my budget. The trade in value of the car is now only $11,500. What are my options? I really do not want to effect my credit score but I desperately want to get rid of my car.

Public Comments

i have that same problem right now! get a digital camera and put it in cars.com for sale! someone will buy it!
Unfortunately, having been in your position, there is nothing you can do. The difference of around $7k is too much to overcome and still end up with a lower car payment. You need to pay off the money owed somehow, so you might as well enjoy the car.
that is tough. the only way out is to sell or trade the car. if the trade value is 11500 the retail private party value should be 13000 or higher, as trade in values are really low. a couple ideas would be 1, trade the car in on something really cheap, like a hyundai accent or kia rio. they are about 9000, and should last you long enough to pay it off and get out of your mess. the up side is low payments. the downside is paying 14-15000 for a 9000 car. option 2 is to sell it to a private party, and borrow the difference on a credit card or loan. get yourself a 2000 dollar beater car until you get the loans paid off and dont buy any more new cars. look at it this way, at least you will have learned your lesson, and you dont have to get into this mess again.
Your first mistake was buying a car that ended up with you having a $ 3000. negative from there you still have not learned a lesson, you buy a brand new car and within a year you cant afford payments and now your looking for a way out being in a hole twice as deep, I am sorry to be harsh but the truth is the truth... If you dont want to blemish your credit , one option is to ask lender or shop around to re-finance for 84 months that will lower your payments and still have a car...on a 2006 model 84 months is acceptable