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You either sell the car for what it's worth and pay off the difference so you can turn the title over or you trade it in, buy another car and roll the difference into the new loan, thereby screwing yourself again when you want to trade in the next one.
Best bet is to keep it until it's not underwater or paid off, then trade it in. Rolling negative equity into a new loan is a terrible idea.
Auto loan credit standards have been tightening up lately. He may have a difficult time finding a lender willing to roll a $7K hole into a loan that will become an even bigger hole once the car rolls off the lot.
(I knew I could count on the evil remarks too. People are so brave behind their keyboards.)
Well, reality hurts.
Buyer made a huge mistake.
So now he/she has to own up on mistake.
The least financial hit is to keep car until paid off.
Now, if the owner of car is pig headed and MUST have a new or different car, then beg, borrow, or get a 2nd job and pay off the car. Period.
Yet I have seen more then one "roll over" and get 108 month car payment just to get into a new Nissan Versa. With the accompanying massive amount of interest.
No, that's the other problem. He's having trouble finding another one he likes as much as this one.
I feel bad because I believe in buying new, paying it down quickly, and keeping the car for at least 10 years to make it pay for itself. And I kind of talked him into doing this. UGH.
SO, no real answers other than "Suck it up, Buttercup" and eat the loss?
Kind of what I figured.
(I knew I could count on the evil remarks too. People are so brave behind their keyboards.)
Oh boo hoo. Another person in the world who is butthurt because they don't like the answer.
I'm not sure what type of answer you were expecting. There is no way to make that balance just vanish, short of having the vehicle repossessed. They bought the car, they are upside-down on the car so they either live with it and pay the car off (or down to where they are no longer upside-down) or they do the stupid thing which would be to trade it in and roll the debt into the next loan and be even further upside-down. The choices are really simple. Also, it has nothing to do with being "brave behind their keyboard", it has to do with you not liking the answers to your questions.
Oh boo hoo. Another person in the world who is butthurt because they don't like the answer.
I'm not sure what type of answer you were expecting. There is no way to make that balance just vanish, short of having the vehicle repossessed. They bought the car, they are upside-down on the car so they either live with it and pay the car off (or down to where they are no longer upside-down) or they do the stupid thing which would be to trade it in and roll the debt into the next loan and be even further upside-down. The choices are really simple. Also, it has nothing to do with being "brave behind their keyboard", it has to do with you not liking the answers to your questions.
Not only does a repo not make an upside-down balance disappear, it ADDS TO IT.
No, that's the other problem. He's having trouble finding another one he likes as much as this one.
I feel bad because I believe in buying new, paying it down quickly, and keeping the car for at least 10 years to make it pay for itself. And I kind of talked him into doing this. UGH.
SO, no real answers other than "Suck it up, Buttercup" and eat the loss?
Kind of what I figured.
(I knew I could count on the evil remarks too. People are so brave behind their keyboards.)
You can roll it into the financing on another car. If you can get something that is heavily discounted from MSRP it may not end up looking that bad. But you can't make a habit of doing this. Whatever you get next make sure it is something you can be happy with for awhile.
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