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Can you get out of a car loan if you owe much more than the vehicle is worth?
Wiki User
∙ 8y ago
You aren't the first person to have this problem. Banks won't just let you out of a loan and take the car back, they wouldn't make any money that way. If you owe more than the car is worth, then it isn't worth selling or trading. You should pay off the car as soon as possible or at least pay it down to the value.
- Consider refinancing for a shorter period through a credit union and make sure you are getting the lowest APR on the loan.
- There are an additional two ways to possibly fix this issue: by getting a short term job to earn enough money to buy it down to the current value and by keeping the car in excellent repair and reducing the number of miles you drive it. Eventually the value will match.
In the future, do not buy a car with a loan that lasts more than three years, and consider a recent year used car. This prevents the new car out of the lot loss and you pay down the loan faster.
Wiki User
∙ 8y ago
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I can't afford my truck loan?
Make an appointment with your bank and explain the situation. Do not ignore the problem. The bank does not want your vehicle. Quite often they will accept a lower payment, it makes the loan more expensive but much cheaper than taking out another loan.
How do you qualify for a quick loan?
In order to qualify for a quick loan, you have to give out information such as how much your house is worth and your mortage goal. They then calculate this and give you your quick loan.
How can you refinance a home loan if you owe more than your property is worth?
More than likely if your credit is good you can still refinance a home that is valued at less than you owe. You would have to roll the difference in what it's worth and what you owe into the new loan. This would only be beneficial if the new loan had a much lower interest rate than your current loan. You can consult a mortgage professional for further details on your options regarding the situation.
What does LTV in mortgage means?
LTV stands for "loan-to-value." In short, how much you're borrowing versus how much the home is worth. For example, if a home is worth $100,000 and your loan is for $80,000, then you owe 80% of the home's value, therefore the LTV is 80%.
How much is the interest on an instant payday loan?
It is honestly not worth it to take out an instant payday loan. The fees for payday loans are extremely high: up to $17.50 for every $100 borrowed. Not worth it at all.
What does gap auto insurance cover?
Physical damage coverage on an auto policy says that the insurance company has the option of paying to repair, replace, or pay the actual cash value of the vehicle. In the case where the damage to a vehicle's cost to repair is more than the ACV of the vehicle the vehicle is totalled and the company will pay the ACV of the vehicle. Sometimes when you buy a new vehicle without much or any downpayment you quickly get "upside down" in the loan. As the value of the car depreciates, the loan balance doesn't fall nearly as fast. For the first couple of years you owe more than the value of the vehicle. The insurance company has nothing to do with auto loan. GAP insurance was created to cover the difference in the ACV of the vehicle and the loan payoff. You can buy GAP insurance from the finance company or bank that financed the vehicle or from your insurance company. Purchasing from the insurance is much less expensive and you can drop the coverage once the loan balance falls below the value of the vehicle.
Is a trust liable for a defaulted auto loan?
If the trust took out the auto loan the answer is yes. Usually an individual or a company takes out a loan If an individual took out the loan , and died without satisfying the loanthen the loan company would have a claim against the vehicle , and if theindividual passed away their estate would be liable to satisfy the loan unless there was life insurance on the loan . If there is nothing in the estate and the vehicle isn't worth much - let them come get the car - they would not have aclaim against the trust because the trust did not borrow the money for the car the individual did .
What is the radiology tech salary?
Stick it out, a pediatrician pays much more than a radiologists. IT means more school (and more student loan debt) but it will all be worth it in the end.
I can't afford my truck loan?
Make an appointment with your bank and explain the situation. Do not ignore the problem. The bank does not want your vehicle. Quite often they will accept a lower payment, it makes the loan more expensive but much cheaper than taking out another loan.
How do you qualify for a quick loan?
In order to qualify for a quick loan, you have to give out information such as how much your house is worth and your mortage goal. They then calculate this and give you your quick loan.
How can you refinance a home loan if you owe more than your property is worth?
More than likely if your credit is good you can still refinance a home that is valued at less than you owe. You would have to roll the difference in what it's worth and what you owe into the new loan. This would only be beneficial if the new loan had a much lower interest rate than your current loan. You can consult a mortgage professional for further details on your options regarding the situation.
Is it smart to get the extended warranty on a used vehicle?
It really depends on how much you're paying for the vehicle. Factors related to price are age of the vehicle and condition of the vehicle. If the vehicle is really not worth much to begin with, the cost of an extended warranty will not be worth your while. However, if the car is worth a lot of money, and you're paying a good price for it, it would be worth it to purchase the extended warranty if it's you can get a good price on that, as well. Consider it this way: do you want to pay for an extended warranty on a vehicle that isn't worth much to replace?
When trading in a car that you most recently bought where does that loan go Does it get added to your new car loan or if the new car you want is a more expensive car do you only pay the difference?
You pay both loans. My advice! Pay off your existing loan before purchasing another vehicle. Talk to you bank's loan officer for more information. When trading in a car the dealer agrees to pay off the old loan as much as the vehicle is worth and valued to them, many times any difference between what you owe and what they will give you is added to the new vehicle loan. It happens a lot and puts you in a serious upside down condition meaning now you owe much more on the new car than it is worth and it will be a few years before you start to gain on the deficit. When the car is a recent purchase you will most likely be upside down still unless you put a large amount of money down, it is the difference between the retail price of the car which is what you pay and wholesale or trade in value which is what a dealer will give for it, this allows them to make a profit. With work and a good down payment you can work the trade in value up, and the new car price down during negotiations to offset the difference.
How much would you pay for a muscle car monthly?
Depends on sticker price of the vehicle, the interest rate on your loan, and how many months the payment period for your loan is.
Can you file bankruptcy on a car title loan?
Sure, then the bank will come back and get the vehicle and send it to the auto auction to get as much of their money as they can. Bankruptcy only applies to unsecured loans. The vehicle loan is secured by the title of the vehicle. If you don't pay, see how long it takes the bank to inform you that the vehicle is now theirs.
Can you get ripped off when you 'trade down' and the vehicle you are trading off is worth more than the one you are getting?
You can always get ripped off anytime you trade. Also you will not receive nearly as much as the car is worth and will pay more in the long run. Sell your car to a private party at somewhere between wholesale and retail. Find the value at www.nada.com By eliminating the trade you are in a much better position to purchase a vehicle at the lowest price possible. Dealers will not give you near what the car is worth. Usually less than wholesale. If at this time you are upside down on the loan, I would suggest you keep what you have or find someone to take over the payments.
What is the value of a 1964 Ford truck?
how much is this type of vehicle worth
