What do I do if I have $10,000 in negative equity on a car loan and can't make payments?
"I'm upside-down on my car loan by $10,000. I can't afford to make payments on the loan anymore.
What can I do?"
“Essentially, you have two options:
The first option is to sell your car and put the proceeds toward the balance of the loan. Then, you should talk to your lender about a payment plan on the remainder of the loan.
The second option is to refinance your car and hope that someone will take over your loan (although this seems unlikely because of your $10,000 in negative equity).
For the future, being $10,000 upside-down on a car loan is a telltale sign you’re making a risky investment. Try to take this as a learning experience moving forward.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
What factors should I consider when car shopping to get the lowest insurance rates?
I'm a 21-year-old driver with a clean record who's looking for a car that will be cheap to insure. What factors should I consider when car shopping to get the lowest rate? For example, I've heard that older cars are cheaper to insure.
Mar 12, 2021
Why do people put a towel in their car window when it breaks down on the side of the road?
"I've noticed multiple cars on the side of the road with the window slightly rolled down and a towel or shirt shoved inside. Why do people do this?"
Jun 21, 2021
Why do I need pay stubs, proof of car insurance, and a buyer's order before I get pre-approved for an auto loan?
"I'm confused by the documents my credit union needs to pre-approve me for a car loan. They want pay stubs, proof of insurance (which I thought you get after you buy the car), and a buyer's order (don't know what that is). Does this sound right? Why do they need these?"
May 26, 2021