How do you sell a car for 8k when you still owe 16k? Should I cut a deal with my 17yr old son to purchase it?

Question

We want to downsize to a car with much better gas mileage. My husband drives 120miles a day. The bonehead cut a bad deal with the Equiox,that's why we owe so much. How do you get out of this scene without losing our hides? The car we want is a Chevy Aveo that get's 40mpg and costs 7k used

Answer 1

Go back to the dealer and trade the car for the one you want.

It's called negative equity.

No big deal, just a bigger payment.

Answer 2

Theresa

I am sorry to say there is no way, unless you sell the car for 17 or 18k.  To sell a 16k car for 8k is a 8k short fall that has to be made up before you can transfer owner ship of the car to any one, remember the car isn't really yours it belongs to the bank, before you can sell it for less you have to pay off the balance.  If you were to trade it in, you would still be liable for the balance of what is owed at time of trade.

Here is one solution you may want to think about, put the car up for sale for 1k and take payments meaning the person who wants it has to make his own loan to buy the car that way you are released from your obligation because his bank will give your bank that balance due and transfer it to the new owners name.  Don't for get to ask for a little bit more that way you can work a deal for the car, get some money for a down on another one and no worries about the last car

Remember if you sell the car for less you have to make up the balance.

Take care and good luck....cya....

Answer 3

So s******g the kid is the answer?

Answer 4

For one thing, do you think the market for that vehicle is soft meaning they take a loss at the auction. Let's say he bought the aveo and paid 12-15 for it, and you go to trade it in on some thing, and they offer 8 for it

Answer 5

hate to say this, but you really dont have many options here.  

If its worth $8k, you won't be able to sell it for what you owe.  That shortfall has to be paid in cash in order to transfer the car.  I am guessing you don't have that kind of money lying around - who does.  So that option is out.

DO NOT try to trade it.  Contrary to the advice that its "no big dea" let me assure  you it is a VERY big deal.  that negative equity gets added to the next loan. Your 8K shortfall gets applied to the loan for the next car.  So then you owe over $15,000 on an Aveo worth about $5500-6000.  And no bank will touch that loan.  that would be a 300% advance, and that just ain't happening.

Unfortunately, you gotta suck it up, tighten the belt, and pay this thing off to the end.  Carpool, stop the Starbucks, no more pizza night every week - whatever you have to dot o save money.  Believe me,, you are far from alone in this.

Answer 6

1.  don't sell the car to your son.  Who picks up the other 8k?

2.  Get some kind of a credit counselor to help.

3.  Even if you bought the used Aveo, are you positive its in good shape?

4.  Sell the car and try to get your money back.

5.  I think you're in big trouble