What can I do if I'm upside-down on a $20,000 car loan but I want to get a new car?

I still owe $13,000 on a $20,000 car loan. I've had this car for a while, but I've never really liked it. What can I do if I'm upside-down on a car loan and want a different, better car?

Answer
“You have a few options, but you probably won’t like any of them.
You could trade in the car for less than market value. Then, the balance left over on your loan will roll over into the new car loan. You’ll be even more upside-down, but at least you’ll have something you like.
You could also try to sell your car for the amount you owe on the loan. However, this might mean you have to sell it for more than its fair value, so that’s next to impossible.
Your final option would be to pay your car down until you break even. This means you should throw any extra cash you have at the principal remaining on the loan. In the meantime, you’ll just have to suck it up with a car you don’t love.”
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Eric Schad
Answered on May 05, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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