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Upside down on cars - what can I do?

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  • Upside down on cars - what can I do?

    I currently have 2 cars that I would love to get rid of and replace them with something less expensive and that get better gas mileage. Both are much bigger than I need and don't get great gas mileage. If I can find a way to get out, it would allow me to free up more cash for debt elimination as well as give me some general breathing room.

    The problem is that I bought both brand new and financed the full cost of both cars. I'm now completely upside-down on both of them owing about $7000 on each loan or a total of $14,000. It kills me when I see this number.

    Is there any way to get around this obstacle? What is the best thing for me to do in this situation? Any help would be greatly appreciated.

  • #2
    You could consider getting a personal loan from a credit union or using a credit card balance transfer check to cover the difference between the value of the cars and the loan balance. Then buy a very cheap used car with cash. This will allow you to stop the bleeding.

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    • #3
      Hmmm... OP, in this thread http://www.savingadvice.com/forums/g...my-sister.html you ask us whether to loan your sister money and here you're asking what to do with your two cars. Somehow dots do not connect for me.
      What's the interest on your auto loan and how much do your savings earn at the bank? If you've got enough savings why not pay off your debts and get rid of the 2nd car?

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      • #4
        Originally posted by aida2003 View Post
        Hmmm... OP, in this thread http://www.savingadvice.com/forums/g...my-sister.html you ask us whether to loan your sister money and here you're asking what to do with your two cars. Somehow dots do not connect for me.
        What's the interest on your auto loan and how much do your savings earn at the bank? If you've got enough savings why not pay off your debts and get rid of the 2nd car?
        The "questions" account is one that I use to post questions that people email to me (see signature). Most of the time it's better for the person to get a number of opinions rather than just mine, so all emails that are sent to me with money questions I post here in the forums, then email the person so they can look at the answers. The two questions were from different people.

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        • #5
          Show us your monthly budget- $14k is not a lot of debt- maybe you could send an extra $700 per month to the car loans and pay them off early?

          post a budget so others here can optimize more than just car payment.

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