Overhaulin' - I have a car that needs to be sold, but loan is upside down?

I have a car that needs to be sold, but loan is upside down?

I cosigned for a car (big mistake, i learned my lesson), ex-friend can't make the payments anymore and is on the run from creditors and whoever else. He was nice enough to drop this problem in my lap. This loan is a major upside loan. The loan is about $23,000.00 and the car might be worth around $15,000.00. My question is if I find someone or a car dealership that will buy it, what happens to the remaining amount of the loan? I know that there is no way someone would pay me $23,000.00 for this car. It's a 2000 Mercedes. I really don't want to pay for this thing. The last thing I want to do is turn it in as a repo. Any advice or suggestions would be great.

Public Comments

You would have to trade it, not sell it to the dealer. They will sell you a new car and put the over amount on the top of the new loan. If you do not want to buy a car, then there is not much you can do. You could find someone else to take over payments, not a great idea, but better then a repo.
You can safely assume that no dealer will buy it from you outright unless you own it and have a title to turn over to them. Even if they did, they would give you a LOT less than what it is currently worth, putting you in an even deeper hole. So, Option 1: You are stuck with it, and the payments. May as well use it yourself. If you already have another car, sell it to get some extra money for yourself because you are going to need it. Unless you are doing quite well and can afford both cars. Option 2: Trade it in on something you want (and sell your other car if you already have one), but then you are stuck with your new car's payment plus the upside down amount added on. Option 3: Find someone gullible enough to take over the payments. Try not to make a big deal about how upside down it is. Good luck. Option 4: Sell it privately for as much as you can, which is likely more than you would get on a trade-in, and immediately find a way to cover the remainder so you can obtain the title for the new owner. Option 5: Get it insured and make sure you have "gap" coverage. Then run it over a cliff, or have it stolen. You didn't hear this from me. Maybe while you still have this car, you can find this "friend" and run them over. Make it look like an accident. I didn't tell you this either.
Maybe you could sell the car to an individual person.Who would be able to make payments to you.Write up a contract.Keep the car in your name,or put a lean on the title until the car is sold.
If they repo it, it will be sold at auction and you are liable for any shortages. No matter what you do or how you sell the car unless someone refinances it, you'll get bitten financially. If you can afford the payments, keep it until the tires fall off. The only "out" you have is possibly filing bankruptcy
You are responsible for the entire amount of the loan. If you sell the car and only get $15,000 for it, then you will need to pay the additional $8,000 to the lender before they will release the title so you can transfer ownership to the buyer. The excessive negative equity is going to make it nearly impossible to unload this car. I suggest you keep it and drive it. I hope you learned your lesson about co-signing.
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