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Upside down and need advice please

Upside down and need advice please

I have a question on regards to this thread. I'm in a similar situation. I'm upside down on my frs. My credit at the time was low 600's and now I've brought it up to mid 700's. I feel I'm running uphill with my car. I have 17k left to pay and kbb value is 14k private buyer and 10k trade in. My payments are 490 with a 19% interest. So essentially in the 2 years I've been paying only 3500 has gone to the principal.
I would like to know if anyone can tell me my options as of right now. My credit has increased and my utilization on 13k is at 10%. I do not know what to do to get out of paying this much in interest when I'm upside down on my loan.
8 REPLIES
Valued Contributor

Re: Upside down and need advice please


@Turningthingsaround wrote:
I have a question on regards to this thread. I'm in a similar situation. I'm upside down on my frs. My credit at the time was low 600's and now I've brought it up to mid 700's. I feel I'm running uphill with my car. I have 17k left to pay and kbb value is 14k private buyer and 10k trade in. My payments are 490 with a 19% interest. So essentially in the 2 years I've been paying only 3500 has gone to the principal.
I would like to know if anyone can tell me my options as of right now. My credit has increased and my utilization on 13k is at 10%. I do not know what to do to get out of paying this much in interest when I'm upside down on my loan.

You need to refinance. Some lenders will go up to 120% of a car's value, so you could be very close to that happening. I'd check with someone like PenFed or DCU and see how high they'd lend on it. If there's a small deficit you'll need to scrape together the cash to make it up.

 

Do *not* roll over negative equity into a new car.

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Message 2 of 9
Valued Contributor

Re: Upside down and need advice please

IME with refinancing most credit unions will go 120% LTV on NADA retail value for the car.  So if it is worth $14k private party what is retail?  

 

To be fair - there are some CUs that will take wholesale value.  Be sure to ask what valuation they use to determine their lending calculation.  

Ch 7 Discharge 3/12/2018
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Message 3 of 9
Valued Contributor

Re: Upside down and need advice please

I think you need to go into your credit union or bank and tell them in person what you want to do and why you want to refinance. It is easy for them to dismiss you over the phone or Internet...not so much face to face. I actually think that you would be pleasantly surprised by their reaction. They deal with these kinds of problems on a daily basis.


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Message 4 of 9
New Contributor

Re: Upside down and need advice please

Take a look at Kelly Blue Book or NADA; both will tell you the retail value.

 

A credit union will be your best bet.  Take a look and see what PenFed will do.

Message 5 of 9

Re: Upside down and need advice please

Unfortunately Penfed website says models 2017 or 2018 only my frs is 2014. Thank you for the advice. I will look into credit union when I get closer to the retail value. I looked up and said 12.7k
Message 6 of 9

Re: Upside down and need advice please

Thank you I will visit a credit union when I pay a little more towards principal and get closer to value of car.
Message 7 of 9

Re: Upside down and need advice please

Thanks for the advice I will get principal lower and definitely contact a credit union
Message 8 of 9
New Contributor

Re: Upside down and need advice please

That's for a new auto refi.  They have another section for a preowned or used auto refi.  Check it out as an option.

Message 9 of 9