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@Anonymous wrote:
Hey guys. I’m stressed out here. I owe 37k on my Jeep and got my new appraised for 28k. I need to sell it. The monthly payments are 645 at 5% interest. Through a credit union. If I sell what happens to the negative equity? Omg
It's not a good situation to be in. Far too often people with auto loans find themselves in similar situations due to factors like low down payments, lengthy loan terms, etc and find themselves 'buried' in the loan when for one reason or another they need to get out the loan.. There really is no magic trick to get yourself out of the loan. You can do as @Fico82 suggests and bury the negative equity in another vehicle but by doing that you're just adding to the situation and delaying the inevitable. If you buy, for example, a $50K car that can be discounted due to rebates, etc down to $40K, you would be buying the new vehicle for $49K once the negative equity of your Jeep is added back in. The problem is that you just paid $49K for a vehicle that is worth well below the $40K that it was discounted for. Too many people do this also and just bury themselves further in a hole.
I'm not sure of the reason for needing to sell the Jeep but one way or another you are going to have to find a way to 1) keep the Jeep for several more years until the negative equity gets smaller or 2) come up with difference between what you can sell it for and the loan balance. You will not be able to get a clear title to sell or trade the Jeep until the current loan is paid off either by yourself or a new dealer. If you absolutely have to sell the Jeep now you would be better to sell it yourself over trading it in or selling it a place like CarMax. Still, while you may be able to sell it for more than $28K, you still won't get close to the $37K mark and then would need to come up with the difference to pay off your current loan.
I know you want to hear something different but you're going to have to assess which option causes you the least financial pain but none of them will come easy. Good luck.
What CarMax is willing to pay for your car is not a reliable indication of what it is worth, it's only an indication of how much they will pay you and be able re-sell the car for a nice profit.
Start with kbb.com, Kelly Blue Book, to get a much more accurate estimate of what you can get for your car as a private party sale or trade-in. Kbb.com also has a feature where you can solicit offers from several dealers.
If your CU would offer you a personal loan to cover the rest of the loan it would be a much higher interest rate as personal loans are unsecured.