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How do you get out of a car loan in which you are upside down?


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Answered 2011-09-20 19:50:48

You can trade it in for a cheaper car and put the remaining balance on the new loan. There is really no way to get out of it, I was in that mess for awhile.

Most lenders will do an 'over advance (110%- to 140%) . So you do not have to trade down to cheaper and often trading up is easier. If you are buying a new car, sometimes the rebates can 'cover' your loss. 110% of a 30, 000. dollar auto is a lot more room than 110% of 10,000.

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Can you use a car loan as a down payment on a car?

ya of curse you can use the upside down car loan for buying a new car...


Can you trade a car that's upside down?

As long as we are talking about the loan being upside down, not the car:Yes you can trade it,BUTIt is not recommended as you will pay a large penalty in extra interest.


If you trade in a car that you owe money on will you have to pay the previous car loan plus your new loan?

Yes. It is referred to as "upside down" financing.


What is another word for being upside down?

If a person is upside down on a loan, it means that they owe more on the loan than the value of the thing that is collateral for the loan.Another word for being upside down is being "underwater."If you are upside down on your loan, you have "negative equity" on the collateral.When a borrower is upside down, the loan is "undersecured," meaning that the security interest (the value of the collateral) is smaller than the loan.


When upside down in a car loan how much more do you pay on a trade in?

If you are upside down with your car loan, meaning you owe more on it than what it is worth, you will need to pay the deficiency. That means if you owe $11,000 on your car and it is worth $9,500, then you will need to come up with $1,500 to erase the deficiency.Keep in mind that this may only be the first step. You may also need to come up with a down payment on top of paying the loan deficiency. If you do not put money down and are still approved for a car loan, then you will find yourself upside down with your new car.


What happen if you can not pay your car loan?

When you don't make regular payments, your car will repossessed. Now if you had an upside down loan, you will still owe the lender.


How can you re-negotiate a car loan for what it is worth rather than what you owe?

You can't. The lender wants what is owed on the car not what it is worth. This is being upside down on the loan.


How do you get out of a car loan?

You must know that it is legal obligation to pay off a car loan. To get out of a car loan, make regular payments. If doing so is becoming difficult for you, then you can sell your car and pay off your loan. Here, there would be problem if you have upside down loan. If your higher monthly payments are making things difficult for you, you can refinance your car.


Can you get a loan out on your car?

ImproveYou must know that it is legal obligation to pay off a car loan. To get out of a car loan, make regular payments. If doing so is becoming difficult for you, then you can sell your car and pay off your loan. Here, there would be problem if you have upside down loan.If you higher monthly payments are making things difficult for you, you can refinance your car.


What do you do to get out of your car loan?

ImproveYou must know that it is legal obligation to pay off a car loan. To get out of a car loan, make regular payments. If doing so is becoming difficult for you, then you can sell your car and pay off your loan. Here, there would be problem if you have upside down loan.If you higher monthly payments are making things difficult for you, you can refinance your car.


Can you buy a car if you are 12000 upside down with your trade in?

You can but the amount(12,000) will be added to the new car loan. If you were to sell your car that you have now and pay it off, you would be better off.


Your car was totaled in an accident while parked the other driver is at fault you are upside down in your car loan so the payout goes to your lienholder How do you get another car who is liable?

a fast car that you race with


Are You Upside Down on Your Car?

Being upside-down on a car loan, means owing more on the loan than the trade-in-value of your car. As you owe more than your car value, even selling your car for payment could not help, so you are stuck with the car and the payments. Upside-down on your car loan is not a problem until you don't want to change your car while making timely payments and you have auto insurance in case of accident. Quite a lot of people experience this situation for the simple reason of not choosing loan terms and type of car wisely while applying for a car. Depending upon the age of the car, some cars will depreciate early. Thus it is necessary for one to consider the car loan terms in accordance to the type and value of car. For instance, if a person has car loan amortize period more than five years, than probably you owe more interest than the value of car as most of the monthly payment goes toward paying off interest amount. Same is the case with people having bad credit as they are forced to accept a higher interest rate while buying a car and as a result a whole lot of their dollar goes in paying up only the interest amount while leaving the principle as it is. Although there are quite a few option available if you are in this situation. Pre-paymentFor the people being upside-down on their car loan, pre-payment could be the smart option to pay off the loan faster. Hence, if a person does not owe much on the loan, he/she can make extra payments each month get rid from being upside down. As making extra payments will help to pay off the loan faster. But before paying any extra payments you need to make sure that your current loan does not have any pre-payment penalties that could restrict you from paying extra cash. Car RefinanceRefinancing upside-down car loan is also a good option for the people as refinancing allows you to redefine your loan terms. Hence through refinancing you can either lower your interest rate or shorten your term period which can ultimately benefit you to get out of upside down situation. In case your lenders do not grant you a traditional refinance car loan you may opt for a home equity loan. These type of secured loans have a low interest rates which not only allows you to pay off your loan quickly but also without spending additional cash. With refinancing you can even shorten your loan term and pay off the loan much faster and do not loose anymore money on the car. Transferring Balance to a New Car LoanFor the people who are looking to replace their car can close the gap of unpaid balance on their current loan and the car's resale value purchase by transferring their unpaid balance of old car on the new car loan and make the lump sum payment for both the car. Thus you can get your new car while being upside down.


If you must voluntarily have your car repossessed due to an upside down loan what effects will this have on trying to get a home loan in two years?

Carly, it can affect what interest rate you pay(HIGHER THAN NORMAL), how much you have to pay down to even get a loan. It is NOT a positive thing to have on your CR.


Can you trade your car with an upside loan?

Yes, but it makes your financial situation worse to do that.


Is there a radio control car that can drive upside down?

The 8015 Super Climber Wall Car can drive anywhere including upside down


Are you responsible for the difference of equity on an upside down mortgage?

Yes, you are responsible for the loan amount (you signed the papers for the loan)


If you are current on payments and leave a car at the dealer because you are way upside down does it hurt your credit?

Usually, your CR isn't great before you take an "upside down" loan. But, YES, it hurts your CR. A repo ia a repo is a repo on any CR.


Is there a way to sell a motorcycle when you are upside down in a loan with it and not owe the balance?

if the loan is through the bank then have the person who is buying pay off the rest of the loan.


When you are driving a car and you observe a number plate of a car behind you from the mirror the number plate seems to be upside down explain why this happens?

It would appear reversed, but not upside down. If it does appear upside down, then either the plate is mounted in such a manner.


How do you sell a car that you still owe on that is damaged?

If you can get enough out of the car to pay off the loan then just sell it. If you are upside down on the loan, they that presents a real problem. You may have to just sit on the car until you pay off enough of the loan to be able to sell it an get enough to pay off the loan. You could also sell it and take out another loan that will cover the deficiency, but that may not be a good decision if you are financially strapped.


What car has an upside down v logo?

Acura


How do you sell a upside down car?

If you mean you still owe money on the car you don't sell it unless you can take the money and pay off the loan. The bank really owns your car and the pink slip, so if you sell it without the loan getting paid you still owe the money to the bank.


How do you get rid of a car that is upside down?

this question is smelly :) hehehehehe


How do you know if you are upside down in your car?

Your head will be touching the ceiling


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