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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?"

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“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.”
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