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"I am upside-down on a broken car with a 29% interest rate. What should I do? "
"I got roped into a high-interest loan on an Acura with nearly 200,000 miles. The car just broke down and requires $1,000 worth of work, which is about a third of the car’s resale value.
I still owe $6,000 on the car loan. Please tell me there is some way out of this.
"
Johnny Puckett · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Since you are so
upside-down
on the car, selling it is not going to be a good option and trading it is going to be an even worse option. Depending on your credit, you may be able to
refinance
for a lower interest rate or a more affordable payment, but you will have to come up with about $3,000 for the amount that you are upside-down on. If refinancing is not an option, your best bet is to pay off the loan as quickly as you possibly can and then sell the car as soon as it is paid off.
“
View full answer
- Gregory R.
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