Dear Terry, I read your article on not trading in a car too early. Well, I did that last year and am now several thousand dollars upside down. Is there any way to get out of this car, besides waiting for the payoff amount to come down? -- MattDear Matt, Unfortunately, there's no magic bullet to solve the problem of being upside down on a car loan -- owing more than the vehicle is worth.If you're unable to make some extra payments to bring down the balance, the only viable option is to keep the loan current until it matches your car's value.One thing to avoid: Don't get talked into trading in yet again and rolling the negative balance over into the new loan.Here are this week's reader questions:5 new cars that may become collectiblesCan my friend force me to refinance?What can my lender do if I can't pay?Do I have options if I'm upside down on loan? advertisementRelated Links:7 best off-to-college carsNational auto loan averagesWhat changes auto loan rates?Related Articles:All new cars for 20105 steps to 'clunker' dealTake the 'cash back?'
Dear Terry, I read your article on not trading in a car too early. Well, I did that last year and am now several thousand dollars upside down. Is there any way to get out of this car, besides waiting for the payoff amount to come down? -- Matt
Dear Matt, Unfortunately, there's no magic bullet to solve the problem of being upside down on a car loan -- owing more than the vehicle is worth.
If you're unable to make some extra payments to bring down the balance, the only viable option is to keep the loan current until it matches your car's value.
One thing to avoid: Don't get talked into trading in yet again and rolling the negative balance over into the new loan.
A little research could save you BIG on interest.