How to get out of my car loan?
(2012-02-03 15:30:09) 1. Says: I bought a 2002 Honda Accord last year. I keep running into problems with it, and I really hate it. I usually get really attached to my cars, but I cannot stand this car. It is not comfortable, I have two kids and it is a 2 door, which is more of a hassel than I thought it would be. It is a manual, which I hate, although I definitely know how to drive them, and I didnt think that would be a big deal either. I still owe a fair amount on the car, although the interest is paid off. Is there any way to get out of my loan without ruining my credit? I really dont want to default and have it repoed, but I dont want to keep it either... Not sure what I should do... Is there a way to get out of it? And if so what do I do? Any help or suggestions would be appreciated...thank you!!!2. Says: The car isn't the problem, the debt is the problem.If there was no debt there would be no problem, you could just sell the car and go get something else.
But you can't sell a car if you are upside down on the loan without a financial lose. You can't let it go back to the lender or you'll get a serious credit hit, preventing you from borrowing money again.
So what do you do?
The ONLY way out of a loan is to close it. Pay it off. There is no magic wand, no government bailout, no knight in shining armour that is going to run in and save you from this situation. You are the only person who can help you.
Your options are:
Get over it and keep the car. You never mentioned mechanical problems so I'm assuming the car runs fine, you just wish you had something else. Well wishing for this to go away is not part of your reality.
Sell the car, cut your loses and move on. Try to minimize the money you will likely lose trading or selling this car. Absorb the loss and find a car that you won't hate after just one year of ownership.3. Says: You have 3 choices:
* Pay off the loan.
* Sell the car and either get enough to pay off the loan, or find someone willing to take over the loan for you (UNLIKELY)
* Die.
Even that last one isn't 100%.
And no, the interest is not paid off. Interest accrues each month. Your payment should cover the interest plus a bit of the principle. As you get to the end of the loan, less interest is being generated so more of your payment is being used to pay down the principle.
A 9 year car couldn't have cost that much. Put some extra money towards the loan payment each month. This overpayment will go towards the principle, helping you pay off the car that much faster. When the loan is gone and the car is actually yours, sell it.4. Says: The best way and most expensive is to pay the car down to what is owed and either trade it in or sell it outright to the dealer. Once this is done its over. best of luck, lets all hope a new chapter in your life opens with a new beginning that focuses on positive outcomes with more good chapters than bad, and that the wind be always in your favor.5. Says: There's only one way. You must pay it off. A loan is a long term financial obligation, you don't get out of it early without penalty.6. Says: sell it or trade it in for something different.7. Says: Sell it for what you owe. If you cannot do so (if you owe way more than what it's worth or what it will sell for), then you come up with the difference in cash.
If you turn in your car to the lender, this is called a "voluntary repossession" and will cost you your credit as well as $$$ that you'll still be paying for a car that you don't have (after the lender auctions the car, they'll send you a bill for the difference between what you owe and what it sold for at the auction, then sue you if you don't pay that).
There is no magic way out of a loan. Not the answer you wanted, I understand that, but it's reality. Tag: How to get out of my car loan?