Even if OP can sell one or both of the cars privately or to Carvana etc…he will still have to come up with the cash to pay the car off. If he’s that upside down on them I doubt he can write a check to the lien holder to make them whole on the transaction. Sure…sell it is good advice on the surface. But where does the money come from to actually pay the car off?
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We are all trying to help you.
- You can try getting an unsecured loan to lump these together, pay off the lender, and try selling the car to private party. Vroom/Carvana might give you good offers too but its not gonna be as good as PP.
- Have you tried to understand why the loan is so high? Did you buy extra warranties? If so, you maybe able to cancel some or all of them.
- DONOT lease a new car. Rolling in this amount of negative equity will require a very premium vehicle and you really don’t want that.
and for gods sake, dont listen to your parents. And as much as you FEEL like you need to get of this situation, its going to take a lot of hard work and dedication to be able to do that!
OP said they can pay off the loans w/ an issue; they’re just not saving as much as they would like. If they sell one of the cars, at least they have fixed amount of neg equity and don’t have to pay for gas/maintenance/registration.
So one of the people who told you that you, at age 24, needeed a second car in case of an “emergency” (b/c I guess ride sharing, public transport, or… your legs won’t do the trick) don’t own a car at all?
This (which is what everyone else on the post has been saying).
OP, things could be worse (at least you can afford to pay off the loans and have good credit). THINK FOR YOURSELF, don’t rush into anything, do your research and run the numbers, and be prepared for some more pain b/c there’s no way to short cut your way out of this.
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Well as others said, you definitely need to dump one of the cars and you’ll save on insurance in addition to other things.
The question is, what can you do to get caught up on one of them? If you can get to the point where you’re not underwater on one, you can sell that one, then use the insurance savings to pay down the second. But if you don’t have a shred of extra cash on hand, that won’t help.
I only saw where @Deloris_Van_Cartier can make the payments on both cars without a problem but is unable to save as much as he would like since he is making 2 payments. I didn’t see anywhere where OP said he could actually pay off one of the cars today after selling it to make the lien holder whole.
If @Deloris_Van_Cartier could pay off one of the cars today after selling it to whoever I don’t think OP would be posing the question here. He would just sell one and payoff the negative equity to lien holder.
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You need to trade in the GLI and keep driving that Sportwagen until you figure out personal finance and lease basics
Yes, correct. My post should have said, “at least you can afford to make the loan payments.”
Even if the OP cannot pay off the debt now, selling one car at least removes the depreciating asset and all costs of owning and maintaining a car (even if it does nothing for the loan itself).
I would sell one of the cars b/c the OP already has a functioning car. The OP doesn’t need two cars (esp if one isn’t driveable)?
I’m not the numbers person that other posters here are, but I don’t think there’s a good solution to the OP’s problems. Getting yet another car, however, would seem to be a bad idea, right?
Tell ur parents to pay off the cars for the crappy financial advice.
The same mom who recommended you should have two cars “just for emergencies”
Oh the irony
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Simply selling the car(s) doesn’t erase the negative equity. Somebody’s gotta pay it. Doesn’t seem like OP has the cash to do so. Until OP is at least even on one car he’s kind of screwed (lack of a better term).
Simply selling one car doesn’t solve the problem. Where does the cash come from to pay off the lienholder?
Also, to be that underwater, some negative equity had to have been rolled into the one that is upside down over $10k
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I’ve never been underwater on a loan, but, if the OP sells a car, does he/she just simply continue to pay off the balance of the loan?
No. In order to get a clean title balance of loan has to be paid off entirely. So cannot sell without the balance being satisfied
Okay, got it.
I guess unsecured loan to consolidate and lower the interest and then waiting until they’re even?
Lightstream only does super prime, which I get the sense the OP is not. And even if so, LS won’t give you a loan much more than the book value.
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Personal/unsecure loans are typically in the 9-10% range for good credit, so I don’t think it’s going to work that well for the OP. There’s exceptions including credit card offers, but, again, can’t speak for whether the OP’s credit suffices.
So I guess just waiting they break even and maybe accelerating that by putting even less into savings, getting additional job(s), hoping for a raise?
Even if @Deloris_Van_Cartier could get 0% financing on a new car, most captives will only allow a certain percentage of the new note to be negative equity. Paying extra on the loan that has the least amount of negative equity may be the only solution (assuming OP has extra money to put on it.) The negative equity needs to be gone or at the very least be minimal before getting another vehicle. It’s just a bad situation no matter how you look at it.
I guess a 7-10% personal loan for $7k is better and will be paid off quicker than a 12% car loan on a $19k car that you don’t need.
These negative equity threads are always the same. 100+ posts and the OP never takes the advice…
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It’s like present day high school 
.