Is there a way to trade in your car if you are upside-down on the car loan?
You can but i would not. stick it out or sell it to someone but it looks like you are stuck because you r upsisde down
The business is in crisis right now, so you will be attacked and treated like the enemy more than ever before. You have to know the real WHOLESALE value of your vehicle with all the features, mileage and damage. Don't be unrealistic but don't be bullied either.
Then get on the Internet and find out what the car you wish to buy actually cost the dealer after they get manufacturers incentives etc. A good resource for this number is a local credit union or your insurance agent (if they have car loan resources). There are also many independant resources.
If your credit bears it, you can go to the dealership and lay out the deal. Don't allow the sales person to bully you with the "Four-square" plan. That is a lie. Every dime you put as a down payment is pure profit to them regardless of the deal. Regardless of the car or what you owe on your vehicle, there are two things to keep in mind. 1. You should pay no more than a total of $500.00 profit to the dealership. That is a fair ammount. 2. At the end of the deal, now you must decline ANY form of extended warranty. And you must also negotiate interest on the loan. The best way to do this is to get a letter of committment from your bank in your pocket with a good interest rate. then when you go to the dealership you can negotiate honestly and in confidence. They will make every effort to better the deal. Don't buy extra anything from them or they will bury you in extra charges.
What do you do if the insurance for a totaled car does not pay off the car loan?
The insurance company will only give you the value of the vehicle, as per the "Kelly Blue Book". They will also send an appraiser out to see what the condition of the car was, as in mileage, any previous damage.
If the accident was another driver's fault, you have to sue him and/or his insurance company for the remaining balance. Whatever you borrowed to obtain the vehicle wil always be more than the car is worth. You have already lost money on it as soon as you drove it off the car lot. But do your research. Go online for "Kelly Blue Book", and get the estimate of the car's value. If it is more, then dispute it with the insurance company. Print the page out.
Can you sell a car when you still have a big car loan to payoff?
Here are answers and opinions from FAQ Farmers:
I'm by no means an expert, and I'm sort of stuck in a similar situation myself, however...I do have one suggestion. Perhaps you could refinance your vehicle with someplace like People First Lending or Capital One lending, in order to lower your interest rate to something manageable. Ask around for qoutes, perhaps you could find something. If you find a better solution though, let me know. I need my 98 eclipse GONE before someone else decides to steal it again!
* I am on the opposite end of this story in a way. I sold my cousin a car for $13,000 interest free 3 1/2 years ago. He just started making payments on it even though he sold it and used the money to put a downpayment on another vehicle. Legally there is still a lien on the car and that lien should have been payed as soon as he sold the car. In your case you could sell the car but the remainder owing would be due upon selling it. It might be a way to get out of it but it's very unlikely that you will be able to sell it for enough to cover the remainder. Good luck.
* Yes you can but you will be what is called upside down. It's never a good idea. And I can promise you, you had better ask for GAP INSURANCE that day! It is optional. It covers you if your vehicle is totaled and the insurance company will not pay you more than what it is worth. Which will absolutely not cover what you owe, and you WILL be responsible for the balance legally there?s nothing you can do about it. Not much good at this point, but the next time you take out a car loan, pay attention to the depreciation of a vehicle, Toyotas, Subaru?s, and other foreign cars hold their value much longer than standard American cars by almost half. Also depending on what kind of loan you have on the vehicle would depend on whether or not you could make and extra payment or two. If you can make an extra payment, you should never put them on the same check, you have to mail two checks, one as payment and the other you have to right in the statements that it is to be applied to the principle other wise you just made and extra payment to interest and lost that extra money you coughed out. You can also make the extra principal payment in any amount. The best thing to do is sell your vehicle out-right to a private party. Do the math and consider all your options and why you really want to get rid of it. I am a loan officer, Real Estate Broker and licensed in and experienced in many many things.
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