Quote:
Originally posted by Concertina
Okay...I work in the Indirect Loan Department of my Bank. I deal with this exact shit every day.
Go to a dealership. Get your the little cheap car of your dreams. Trade in the car you don't want. The dealership normally pays for the car IN FULL. It doesn't matter how much the car is technically worth; it's all about your loan balance and how much they think they can sell the car for. If they want your business (which if they're anything like the dealerships in our area, they will) they'll do it.
They own the car, they get the title, you get the smaller monthly payments and car of your dreams....
Ta-Da!!!
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Ahhh....it doesn't work that easily. You should have also said the new loan includes the amount you needed to pay off the trade-in car. The only way you lower your payments is by dragging the loan out further, like 60 or 72 months. Then you're repeating the cycle, and possibly making it worse since it will take even longer to get equity in the new car.
My suggestion: see if you can re-finance through a credit union for a lower rate and a longer term. It will lower your payments, but you'll be stuck with the car longer. You'll still owe more than it's worth (for a longer amount of time), but you should be able to make the lower payments.
Try also seeing if you can raise the deductibles on your insurance. Assuming you're a good driver and don't wreck the car, this should lower your insurance rates and free up more cash to make the car loan payments.
Other than finding someone to buy the car for the loan balance, you're stuck.