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Can't afford car anymore

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Raiders1
Valued Member

Can't afford car anymore

My brother in law who's 24 bought a new car a little over a year ago that cost $36K. Since then he lost his higher paying job and had to take a lower paying job and also had a baby a month ago. His Car payments are about $580/Month to Ford Credit. Now with the baby and lower paying job he can't afford to pay the car. He still owes about $28K and the trade in value is about $20K. He has good credit and doesn't want it to get repossessed so he's still making his payments. He is willing to lose the $8k difference if necessary but he doesn't have it in cash so it would have to be in payments.

Any ideas on how he can get out from the large monthly payment?

Thanks for your help.

Starting Scores:
EQ FICO 648 - TU08 598 - EX FAKO 544 (1/2012)
Current Scores: EQ 703 - TU 767 - EX 750
In My Wallet: AMEX BCE ($22.5K), Discover It ($10K), USAA World MC ($9K), Chase Freedom ($8K), Fidelity Rewards ($5K), Citi Double Cash ($4.5K) Walmart ($4.5K),
Message 1 of 4
3 REPLIES 3
mariposa7678
Regular Contributor

Re: Can't afford car anymore

refinance maybe?

2/23/15 -EQ 676 TU 627 EX 665 7/27/15 EQ 683 TU 683 EX 677 9/4/15 EQ 719 TU 690 EX 677 11/5/15 EQ 725 TU 693 EX 734**2/7/16 EQ 732 TU 696 EX 742
Message 2 of 4
settleordelete
Regular Contributor

Re: Can't afford car anymore

The retail value should be higher than the trade-in value, so I would sell it and borrow the difference from another bank to pay it off or get that dreadful second job to help keep up with the payments.
I've been where you are trying to go and I don't wanna go back.
Message 3 of 4
fury1995
Valued Contributor

Re: Can't afford car anymore

The ideal way is to refinance the vehicle. Reaching out to a local credit union may be the best route for the most LTV advance, especially if he has higher scores.

Some may use NADA retail value for their lending guidelines. Of course this is for lowering the payment. If the intention is to eliminate the payment completely then selling the vehicle private party is the best opportunity to get closer to the loan payoff.
August 28, 2023 FICO 8

August 28, 2023 FICO BankCard 8

August 28, 2023 FICO Auto 8

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Message 4 of 4
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