Overhaulin'

How can I get out of my upside down car loan?

I owe $32,000 on my car loan. I should be able to sell my car for $25,000. What options do I have with the other $7,000? Can I refinance the $7,000 to get a cheaper monthly payment and go and get a different car after I sell the one i have now? Wht can I do?

Public Comments

1. What kind of car? Would you be better off keeping it? ( safety, handling, gas mileage, expected longevity,,,). You would have to get a personal loan to cover the remaining $7,000 debt. idk what rate you personally would be charged. Just make sure nothing upsets your credit score, or you will pay lots more interest on your next car (unless it is super cheap).
2. sell that car and buy a car for less than 7.000 like 6.000 and kept 1.000
3. Talk to your bank or local credit union - see if they will do a signature loan for the balance. If you have another vehicle that is paid off and has $7000 equity - the bank will do a substitute of collateral.