What should I do about an upside-down car loan on my Ford Escape that needs a new engine?

"I currently owe $6,000 on my car loan, but my Ford Escape is worth $2,500.

My car also needs an engine replacement that will also cost $6,000. Insurance won't cover it.

What should I do?"

Answer
“There’s not much you can do in this situation.
First off, $6,000 for an engine seems outrageous. Take your Escape somewhere else for a second opinion. Ask about getting a used engine instead of a new one—this might lower the cost substantially.
If you need wheels, fixing it is perhaps your best option rather than buying a new car. There’s no need to go further in debt.
Then pay this loan off as fast as possible. Try to cut any extraneous expenses and put all your saved money toward the balance, regardless of whether you fix the vehicle.”
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Eric Schad
Answered on Jun 07, 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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