how to get out of a bad car loan

[Anonymous]

I traded in a newer car for  a 2006 escalade that was selling for approx $45,000,   they tagged on approx $15,000 to the price of the escalade to total $53,000. My monthly payments are $1109.  I will be in this loan for another 6 years and I am trying to get out of debt.  what should I do?

TU  546, EX 570, EXP 572...TRYING FOR 700'S

[karbon86]

Why did you get another expensive car if you are in debt?  I would have traded it in or sell private and bought an older used civic etc.

[Anonymous]

I WANT TO GET OUT OF THIS ESCALADE SOME TIME THIS YEAR.  i WAS THINKING ABOUT TRADING IT IN AND GETTING AN OLDER MODEL CAR AROUND 10,000 OR LESS BECAUSE THE DEALER WILL PROBABLY GIVE ME ABOUT 30000 BUT I OWE 48000 ON THE CAR.  SO THEY WILL TAG ON ANOTHER 18000 ON TO THE LOAN.

[Anonymous]

Uh NO, lenders are no longer allowing a deficiency from one car to be added onto another.  Acutally in this market most are looking to give 90% loan to value loans but may require alot more down.

So if you purchase a car now for $10,000 you can expect around a $9000 loan.

The days of adding onto your new loan the shortage from your prior loan are gone.

With credit scores under 620 you will find it difficult to obtain a car loan from any bank right now.

Message Edited by Mark-MD on 12-20-2008 06:55 PM

[Anonymous]

Thanks for the advise.  I will just try to pay the car off.

[Anonymous]

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@Anonymous wrote:

Uh NO, lenders are no longer allowing a deficiency from one car to be added onto another.  Acutally in this market most are looking to give 90% loan to value loans but may require alot more down.

So if you purchase a car now for $10,000 you can expect around a $9000 loan.

The days of adding onto your new loan the shortage from your prior loan are gone.

With credit scores under 620 you will find it difficult to obtain a car loan from any bank right now.

Message Edited by Mark-MD on 12-20-2008 06:55 PM

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Even with those online lenders such as Barnone.. it will be impossible to get a car loan?  Just asking because I have read  and was  told not to get a loan from the dealership if I have bad credit

Strong

Message Edited by strong_lady on 12-21-2008 01:59 PM

[Anonymous]

Well sure, Barone and others are giving out loans for used cards. However, they will NOT give out a loan to cover the cost of your deficiency on the car you are trading in.

Again, if you purchase a $10,000 car, you will NOT be able to get a higher loan for the shortage amount you are upside down on with your trade in.

[Anonymous]

This is not necessarily true in all cases. I have really good credit and Nissan was willing to add the deficit balance to a new car loan just yesterday. However, that being said, they were giving me a horrible trade in amount, and a super high interest rate.

I decided that was a REALLY bad idea so I'm going to keep my current car, and take the extra $$ I would spend on the new car payment and apply it to my current loan to get it paid off sooner. I like my current car better anyway, it is just a bit more costly to operate.

[Anonymous]

Let me get this straight, you bought (and overpaid) for a used escalade and you want to get out of debt. I am sorry but sounds like you will be stuck with it. You can try to sub-lease it to a responsible individual but I personally would not recommend it. Post an ad on craigslist and see if somebody would like to take over the payments through your bank. Your best bet would be to try and sell it to a private party.

[Anonymous]

Right now, due to the market, you can buy a brand new escalade for 50K so this car is probably at least 15K underwater or maybe 20K so selling it is probably not an answer unless you have alot of cash sitting around.