In 2005 I got into a BAD car loan. High interest and not so good car(Dodge Stratus). How do I get out of it?

Question

I'm trying to find out hot to minimize the financial damage since I still owe $10K but the car is currently only worth about $3K. Looking for anybody that has had experience in this situation or has a perspective that I don't have.

Answer 1

1. You should thank the dealership for the opportunity to learn about taking out loans anf the ramifications

2. You can talk to them, maybe they will give you a small break.

3. If you take that as a life lesson, its worth the 10k

Good luck!

Answer 2

When I bought my car in 2002, my credit was not good, and the dealer got me a loan at 21%.  However, honest car salesman that he was, explained to me how if I made my payments on time and in full every month, I might be able to get a regular loan from a bank in 6 months.  Sure enough, after six months of making these high payments, I was able to refinance at 6%!!  I paid it off in February!  Oh Happy Day! :)

So, that's what you should have done a couple years ago.  I don't know if you can get a $10K loan on a car (collateral) only worth $3K.  But that's what you need to do . . . find a way to get a lower interest loan.  I suppose default and a visit from the repo man is always an option, but not one I'd like to end up with.

Good luck to you!

Answer 3

Im sorry but I think your stuck.

I bought a car for £4000 in the UK - when Id finally paid back nearly double I swore to never get a car on finance again (thank you for that lesson Welcome Finance).  I even had the chance to pay the loan off early and they told me that I would have to pay a 'percentage' to get out of the deal.  

The car wasnt even drivable by the time I had finally cleared the bill.

Aim to keep the car on the road as long as you can, and maybe get intouch with the finance company to find out if there is a get out clause.  Maybe borrow the money from the bank to clear the debt - it may be on a lower loan rate, and might save you some money.

Sorry I cant help further.

Answer 4

Woah , how did you get in to it in the first place? But to tell you the honest truth your pretty much in a loose loose situation, no way possible you can come close to breaking even..

Answer 5

If you buy a new car, or a used car from a dealership, you can pretty much guarantee youre going to be upside down from the start.  You seem to have particuliarly gotten hosed.   You have no option outside of sucking it up, unless you can roll that car into another loan and get some stupid dealer to sell you a car for less then its value, and then youd technically be still under water, but further up then now, or you can hand over the keys and face those problems.

Answer 6

You get out of a loan by paying it off, unless you can prove there was some thing illegal about your transaction, in which case you may be able to sue your way out. But you’d have to spend money without assurance of winning to start that process.

Answer 7

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