Overhaulin'

How do you get out of car loans when your upside down?

Public Comments

1. Turn the other way around
2. You need to bite the bullet and pay off this car loan completely. I too was upside down on my loans. Eventually you keep rolling debt into more and more cars. Pay this one off and start over.
3. You can do three things here. 1) Trade the car in and apply the amount you are upside down to your new loan. This is highly unadvisable. What you are doing is creating a mountain of debt on an asset that is losing value. You will not be in a good financial position and be upside down on youur next loan as well. 2) Sell the car and pay the amount you are upside down to the bank. This is fine if you have the cash on hand. You made a bad initial loan and have to pay for it. 3) Ride it out and make the payments. This may be the only way. It is better to keep your car than to just build more and more debt. Think long-term here.
4. The way to lose the least amount of money is to sell it on the retail market.