Upside down!!! What to do?

Anonymous · ‎08-19-2008

Need some advice from the good people on this site. Here it goes.....

Have a 06 Pontiac and owe $16,800 for 2 1/2 more years. I think its financed at 11%. My scores were poor at that time and was in desperate need of a car. Didnt even think about the long term problems with this rate.

My fico scores are at 665 EX, 646 Eq, 636 Trans.

Even worse news is that the blue book value is only $9,100. Retail value i think is at 14,000.

Whats my best bet? Get a cheaper car and add the negative equity?

Suffer and just pay it till its done?

I also have been working on my credit and dont want to do anything to lower my scores.

Thanks for any help!!

Watchmann · ‎08-19-2008

Stay with the loan and pay it off. In early 2011 it will only be 5 years old and should still be in good shape for 3 or 4 more years. Then keep the car and drive it for awhile, and save the monthly payment accounts for a nice downpayment on your next car.

disaster wrote:
Need some advice from the good people on this site. Here it goes.....
Have a 06 Pontiac and owe $16,800 for 2 1/2 more years. I think its financed at 11%. My scores were poor at that time and was in desperate need of a car. Didnt even think about the long term problems with this rate.
My fico scores are at 665 EX, 646 Eq, 636 Trans.
Even worse news is that the blue book value is only $9,100. Retail value i think is at 14,000.

Whats my best bet? Get a cheaper car and add the negative equity?
Suffer and just pay it till its done?

I also have been working on my credit and dont want to do anything to lower my scores.

Thanks for any help!!

Anonymous · ‎08-19-2008

If you have any extra cash you could try to whittle it down some to reduce the amount of interest you will pay over the life of the loan - then you will pay it off a bit early. I too recommend you drive it awhile and save up for your next down payment once you pay it off.

Anonymous · ‎08-20-2008

Watchman is on point. Think how much better your score will be when you pay this bad boy down! Rolling neg equity keeps you fighting from behind.