“Dear Steve,
I’m 22 , I made a bad decision to buy a car that was nice at first but not very accommodating.
How can i get rid of my financed vehicle? I understand i may end up upside down on my loan but what happens after? how will this negatively (if so) affect my credit?
Andrea”
Dear Andrea,
In order to get rid or transfer a vehicle you will either need to donate it or sell it. Either way the same underlying issue will exist. You will need to pay off the loan that is secured by the vehicle in order to get a clean title you can transfer.
One way people deal with this, that winds up hurting them in the long run, is they trade in the car on a new vehicle and roll the negative equity into the new loan. This will result in the new loan being even more upside down or underwater and leave you even more trapped in the new car.
One other option would be to take it to a local dealer that buys used cars and determine the amount they would give you for your car and then give them the car plus the additional money due to satisfy the loan on the car.
I know it sounds unbelievable that you’d have to give up the car and give them cash as well but without a clean title and the current loan satisfied, you are stuck.
Please post your responses and follow-up messages to me on this in the comments section below.
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