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Posted in Auto Loans
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autoloanhelp

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Current car not worth the loan, how can I get a new one without raising my payments?
I bought a car about 2 years ago and the car is not holding up well at all. Pretty much as soon as I bought it, it has been one problem after another. I REALLY need a new one and still owe about 6500 on my current car. The trade in value, according to a couple different websites, is only 3400. When I purchased the vehicle my credit score was only a 590 or so and now it is around 730. Is it possible to get a new load on a car, add the remaining balance of my previous loan and still not pay more than what I am now? Any suggestions or advise?

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Thats a tough one...

The chances of getting a new loan to cover the cost of a new car and the old loan is slim.  Lenders don't generally give a loan for $6500 more than tha value of the colateral (the new car).  And keeping the payment the same would be impossible.

You may have to take a personal loan in order to pay off the original loan.  You are upside down on the original loan so you will have to pay off that loan in order to get the Title so you can sell the car.  Be sure to check with the original lender to see if there are fees and costs associated with paying the loan off early.  

I'd say that your best bet is to sell the car privately and get as much out of it as you can then pay that on your personal loan.

Good luck

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A GAP claim would be the only way to get out from the negative equity. Outside of a total loss, your only option is to pay down the balance.

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