Overhaulin' - How to sell a car with and upside down loan?

How to sell a car with and upside down loan?

I own a 2003 vw beatle. Currently I owe 17.4k and after looking on the internet I can sell it for at most 14k privately. So, if I were to get 14k for the car privately how would I transfer over the title that I still owe money on? I don't have the money to make up the difference right now. I am thinking the best way would be to trade the car in for a cheaper car and wrap it all up in a package at the dealership. My family income is $250k but my credit is low because I have 5 cars titled in my wife's and my name. My house is ~2400 a month. Any advice would be awesome!

Public Comments

The easiest way would be to buy the car now outright and then sell the car. Borrow from equity line and immediately pay it back once the car is sold.
Normally, I would advise against trading in at the dealer as those guys will most definitely rip you off. They will probably offer you around $10K for the trade-in and really screw you on the interest for the new vehicle. It sounds like you might be digging yourself in deeper.
you can trade a car in that the loan is 75000 upside down and the dealer will most of the time just add the difference to your new loan so either way youll pay the difference
You can't get rid of a car that has an upside down loan without paying the negative equity somehow. The negative equity will not go away. You can sell the car and use extra cash to fully pay off your loan, or you can trade and have a dealer roll your negative equity into a new loan. However, this makes you even more upside down in your new car, especially if you buy a cheaper car. It's not a good situation to be in because it'll make your next sell or trade even more difficult and it exposes you should your car be stolen or totaled in an accident. Your insurance only pays what the car is worth, not what you still owe on your loan. Your best option is to simply keep the Beetle and keep paying until you are no longer upside down. Then, you'll be in a position to sell or trade without problems.
Well depending on how low your credit is will determine if trading is a good option. You can not sell it unless you have all the money to pay it off and get the title with the lien released. You could take out a home equity loan if you have enough equity and pay the car off. Then sell the car and pay off the amount you receive for the car on the home equity loan. Then that would leave you a small balance on the equity loan and you could pay that off quickly. Also the interest on the equity loan would be tax deductible. Then there is the option of trading it, you will be further upside down then the $3400 if you sold it on your own because the dealer is only going to give you trade value for it maybe a bit more. Find a car with a good rebate that you can buy as close to invoice as possible and this will help eat some of your negative equity and with starting a new loan term could lower your payment. This will cause negative equity in your new vehicle though. My main concern here would be loan options because if you make $250K a year that is $20,833 a month give or take a few dollars. Then your house payment is $2400 and your 5 car payments are probably a few thousand and then I am sure there is some credit cards, other loans etc. so you need to make sure your debt to income is in line or that could throw a few kinks in a loan whether it is equity or trade.
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