What if your vehicle is still pretty new and you defult?

Question

another loan wouldn't make any sense if you are 10,000. or better upside down and can't make the payments would it?

Answer 1

If you can at all make the payments, continue to do so, even if you have to get a second job.  If you default, and they repo the car, it will completely mess up your credit.  What will happen is that the repo agency will auction the car, for a fraction of it's value, then deduct storage and towing fees from the auction proceeds.  You will then be responsible for whatever is still owed on the loan, less the net amount earned at auction. It will trash your credit report and make it very expensive to get another car loan. It will also hurt your ability to get an apartment, and for some employers, bad credit will hurt your ability to get a job.

If you can't afford the payments, try to sell the car, or trade it in for a much lower cost car and refinance the loan.