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Is there any way to get out of a car loan or to reduce the payment amount? When I got the car last yr, my financial situation was better, but now I can't afford the payments. I am just managing to keep enough paid on it so it won't get repossessed but I am constantly behind. Are there any options for me besides bankruptcy? Oh, and I have not paid off enough of the loan to trade it in for another car. I owe way more than the car is worth. Thanks for any help you can give me!
Would you be able to refinance it with a longer term of payments that will lower your monthly payment? Could you try to sell it private party for enough to cover the loan and then get another car with a smaller loan that you could better afford? For most cars, you will get way more money for it if you sell it private party than what you will get by trading it in at the dealership. I did trade in my last car because my DH was deployed and I didn't have the time, patience or money to get a couple of things fixed on it and put forth the effort in trying to find a buyer for it....for trade-in, they gave me $4k (which I had to fight for! They wanted to lowball me at $3200) but if I'd have sold it private party, Kelly Blue Book estimates I could have easily sold it for $7500 and possibly $8k depending on how the condition it was in was interpreted. It may not hurt to try to put an ad out on Craigslist or Auto Trader to see if you can get anyone interested in buying it. That is, assuming you're interested in selling it and buying a car that would better suit your budget. Otherwise, refinancing may be your only option.
Please do not refinance. All you end up doing is paying MORE money (in finance charges) on a car that you're already upside down on. Not to mention, if you're upside down on the car anyway nobody is going to refinance it at this point.
Honestly I think your best bet is to call the bank and see if you can lower the payments for a set number of months. If they won't do that then I'd say give the car back (yep it's going to screw up your credit) and just let it be repossessed. In the mean time take the money you'd be paying on that car payment and put it into a savings account. When they repo the car, take the CASH you've saved up and go to a PRIVATE PARTY and purchase whatever you can afford (yep, it may be a beater mobile for awhile) with the CASH that you have in your hand. No reason to file bankruptcy you want to avoid that at all costs if you can. This way you are out of the car payment but you still have something to drive and then if that something isn't something you want to keep for long term you can start saving whatever you can whenever you can to then buy something better and upgrade when you have enough cash to do so.