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Posted in Auto Loans
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MatthewOceanXVX

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Can't Afford Car Payments. Trying To Find Cheaper Car & Loan. Owe More Than Current Car Is Worth.
Hey everyone, need some help.

Currently my car payments are around 570 a month (620 with late fee), (a $34,000 loan at 7% interest). Due to some unforeseen financial circumstances, I can't afford to pay the loan on time monthly anymore, and thus, I'm trying to find a car with much lower payments monthly (around 350). The problem is, the car is worth around $23,000 at best now, and I owe $28,000 on it. I'm already owing more on my current loan, because I had my last trade loan roll over into this one. My credit score is only at around a 590, surprisingly due to having some old inquiries falling off. What the heck should I do? I feel like with my credit score, and how much I owe on the car vs how much it's worth, I won't end up any better than I am now. Would appreciate any help I can, and absolutely cannot let the car get repossessed.

Thanks in advance.

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Top Contributor
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Give the car back to the dealership and ask for them to consider the loan as paid in full. Unlikely they will accept that offer, but worth talking to them.  With your credit score it is unlikely that you can get financing that would be worth it, you might get refinanced but the interest rate would be well in to double digits, thereby making your payments not low enough.  I would work with the current lender and even if you lose the car and still have to pay off the 5k you will be better off. The long you take to do this the more your late fees and interest will rack up and make it worse and harder to get out from under.  In a few months you can save a couple of thousand to buy a used car with no monthly payments.

This is a prime example why you NEVER roll over an amount oweing on an old car to a new car loan, and you should always come up with 20% down for a new car to avoid being upside down.

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