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Posted in Auto Loans
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aufkes22

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Upside down car Loan
I currently owe 7500 on my car 2008 Hyundai Elentra that has 132,000 miles on it so its worth about 2500.00. I have 2000.00 to put down but I would still be negative about 3000.00. is it a good idea to trade it in? and should I go new or used? Also my credit score is at about a 570 but should go up a little because I'm paying down most of my credit cards next month. If I don't trade in what should I do? Also filed a chapter 7 was discharged April 2013.

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I have a 2004 Hyundai.

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I'm still driving it with 169K miles.  I haven't even thought about buying a new car because mine is still runing great and its paid off. 

With a score of 570 and a Ch 7 on your report, the chances are that you will be paying a very very high interest rate If  you do qualify for a new loan.  If you could get the dealer to pay off your old loan, (it would probably be rolled into your new loan) then you would be paying a lot more for that new car than it would be worth.  

If you really want to get out of that car, I would suggest that you check with you loan servicer and see if there is "an early pay off fee" if not, make some extra large payments to get the loan down to where you can pay off if you sell the car, then sell the car your self, You'll get a better price for it, maybe $3500.  

Good luck 

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