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Dear Terry,
I have a 2007 Dodge Charger R/T. We are way upside
down on the car and have a high payment. I want
to know what options, if any, are available to
get a cheaper payment.
The Blue Book value if it is in great
condition is $23,000 and -- get ready for this
one -- we owe $41,000 because we were also upside
down on the previous two vehicles we purchased.
All that has been added to this one and I would
like to refinance it and try to get a cheaper
payment. Is that even possible?
-- Shannon
Dear Shannon,
While I'm all for a free marketplace, there should be a law against rolling over negative equity into a new car purchase.
The subprime mortgage crisis was created in large part by extending mortgages with stupidly low initial
interest rates to unqualified buyers. Car dealers and lenders have created a similar problem by allowing people to sign
on for loans that are far larger than what the new cars were worth before depreciation set in.
I wish I could offer you some hope, but there's little likelihood that refinancing even for a year-longer
term -- assuming you're not financed at 72 months now -- would significantly cut your payments. Hang in there, get this car
paid off no matter what and never again roll over negative equity into a new loan.
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