Negative equity put on car

[wcchick712]

My husband and I made the mistake of placing 10k negitive equity on our purchase of a Toyota prius. We now have a child on the way and won't be able to afford the 600 dollar car payments. Even with trading it in we will always owe ten grand. Is there another way to get out of our horrible situation happily? We have perfect credit and don't want to do anything stupid

[instant_oatmeal]

I dont think so. Cars lose their value as soon as you drive them off the lot. You could maybe try to sell the car outright and hopefully it will cover your loan....

Not really sure. Good luck.

[rosebud*]

well you can make more payments on the principle amount. for instance your car payment is 550 say you can throw an extra 50 or 100 on the principle ( you would have to specify that it is for principle) and that helps reduce it, but short of finding 10k on the street no.

[carolinagirll]

I don't know. I'm sorry

[*Pamela*]

You could get a personal loan, but you'd probably end up paying more in interest by the time you paid it off.

[carolinagirll]

Originally Posted by *Pamela* You could get a personal loan, but you'd probably end up paying more in interest by the time you paid it off.

Yeah I think she would too

[Trey]

You could also try to refinance for a lower rate and extend out the payments. It's not something I would suggest, because in the end, you pay more in finance charges, but at least it gives you more room each month to pay bills and IF you have extra, you can always pay down more on the princial like Rose***** mentioned.

[LoveMyHalos]

How much do you owe on the car? Prius' are in demand, so you might be able to sell it for a high amount and then buy something else? It's a hard situation...

[rosebud*]

Originally Posted by Rileysmom You could also try to refinance for a lower rate and extend out the payments. It's not something I would suggest, because in the end, you pay more in finance charges, but at least it gives you more room each month to pay bills and IF you have extra, you can always pay down more on the princial like Rose***** mentioned.

whatever *****.

[wcchick712]

Originally Posted by rosebud* well you can make more payments on the principle amount. for instance your car payment is 550 say you can throw an extra 50 or 100 on the principle ( you would have to specify that it is for principle) and that helps reduce it, but short of finding 10k on the street no.

payments were set at 580, and we were doing 600 a month. It sort of helped

Originally Posted by Rileysmom You could also try to refinance for a lower rate and extend out the payments. It's not something I would suggest, because in the end, you pay more in finance charges, but at least it gives you more room each month to pay bills and IF you have extra, you can always pay down more on the princial like Rose***** mentioned.

we ended up taking off the pre-paid maintenance coverage, low-jack & gap coverage and refinancing for 5 years now through USAA. The thing we took off saved us over 2k in the loan, and now I think we owe a little under 30k? if not 28k. The new payments will be 440... a much more workable number.