What is the best what to get rid of a car with negative equity?

Question

What is the best what to get rid of a car with negative equity?

Answer 1

sell it by owner for top dollar, but have the money to pay of the loan.. or by getting rid of it, you could come up with some illegal insurance fraud plot (make sure you have GAP insurance)

Answer 2

ha ha hit a pole and have full coverige on it thats the only way lol when you get up side down on a vehicle you are stuck untill you pay it off tradeing it in just makes matters worse you just keep going farther and farther in the hole

Answer 3

it depends on credit score, how much equity you are down and what type vehicle you like,, right now in used TRUCKS AND SUV HAVE A BIG BOOK! nada trade is huge on those because dealers are taking them in cheap, if you want new then go with the big rebate again trucks and suv carry the biggest rebate, that will help you out of negative equity,, if you buy make sure you get gap insurance!!! if the car gets totaled or stolen you wont have to pay the negative equity out of pocket,, im a sales mgr for a car dealer, hope i helped you out

Answer 4

Get the best price you can for it and eat the rest.  That's the best way, not the easiest.  Easy way out is to let the financier repossess it, but that's not good for you.  Next easiest is finding someone else to take over payments, but you are still officially on the hook if they don't pay, and the risk of being out even more money - let's say they never make a payment and then total the car - is too high.  Sell it, pay the rest yourself and move on.

Answer 5

Accelerate payments if the lender will allow you to do so without penalty.  Sometimes even with penalty, it will pay to do so.  Every dollar you pay over the amount due goes directly to principle, lowering what you owe.

I paid off a 30 year mortgage in 7.2 years using that method of accelerating payments.

Once you get it even, where there is no longer negative equity, you can look to refinancing if you like, or sell without further loss.