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?"

Answer
“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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Eric Schad
Answered on May 26, 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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