I owe 8,000 more on a van worth only 2,000 is there anyway out of this because the van has so many problems?

Question

It is a ford windstar. Paying over 24% interest.

Answer 1

The van's condition has nothing to do with the lender's requirements on paying back the note.

Thousands of Americans have watched their vehicle's value take a nosedive recently. Don't panic and try to trade out, you'll eat thousands of dollars. If you can, apply anything possible (try to double-up) on the payment for two years, and get it paid off as soon as you can.

Answer 2

Unless you're willing to have the van repossessed and destroy your credit for the next 7 years, you're stuck.

Answer 3

This question is asked all of the time.

There is no magical solution to getting out of a car that you owe too much on.  Sooner or later, you end up paying for it and the more you roll negative equity into a different vehicle, the more you end up paying in the end.

I know it sounds hard to believe now, but financially speaking, your best option is to keep paying on this van until it is paid off.  I would recommend refinancing if you can, but since you have a 24% interest rate, it sounds like you have poor credit and this may not be an option.

Answer 4

There are bad ways out ... but the ethical answer is to pay off the loan.  You can try transferring the balance to a credit card and maybe the lender will cut you a break on an early pay-off if you call and try to negotiate.  But you owe the money so any effort to not pay it is going to hurt your credit and probably cause your van to be repossessed.

The hard lesson is to be more careful in buying cars in the future.  Don't finance them for too long of a time period and watch out for high interest rates.

Sorry there isn't any easy answers for you.

Jerry Hobby

http://www.anythinginternet.com