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Old 06-03-2009, 07:30 PM
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Quote:
Originally Posted by wincrasher View Post
But if he is upside down on both cars then he is stuck - can't sell them
People get rid of cars all the time when they are upside down. They roll the loan balance into the new loan. Let's say a car is worth 12K and you owe 16K. Buy a replacement for 5K and take a loan for 9K. You reduce your total debt by 7K. Even if the rate is higher, the payments will be lower. If you have any savings to put toward the purchase, even better.
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