Question

Question Is their such a thing as giving a vehicle back haha. We bought a Durango a year ago that is just too much a month. We owe a few thousand more than it's even worth still on it. Meaning we owe 20, 000 but it's only worth like 15, 000. My husband said you can't just give it back and since we are upside down on it we can't trade it for something cheaper. What can we do here? ANYTHING? I want to lower my monthly payment right now its 450 a month

Answer 1

Your husband is correct all they would do is roll the amount you’re upside down into your new payments which would jack up the price of whatever you traded it in for.  

Comments

@bienne535 yea I know that are there any other options tho or just keep the Durango

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@pepsin unless you sell it privately for what you owe that’s kinda the only other option when it comes to trading it in

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@pepsin yes and selling it privately if they have access to @sweeny blue book I can’t see someone paying more then it’s worth for it

Answer 2

Yeah agree. Or u can sell it and get a loan for the remaining balance.  

Answer 3

You can always turn it in, but like the previous poster said, your payments would probably be higher than what you're paying now since you're upside down on it. Best advice is pay down your loan more and then trade it in when you don't owe as much.  

Answer 4

You could do a voluntary repossession but comes with a lot of negatives.  

Comments

@sweeny that sounds like it would be all negatives lol

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You don't really want to do that. You will end up having to pay what the lender doesn't get for it. You would be better off trying to get a loan modification or selling it and working with your lender to payoff the difference.  

Answer 5

How long have you had it? You could try refinancing. It could majorly lower your monthly payments.  

Comments

@oscular we have had it for a year I looked into that and it would but my husband said it wasnt worth it because it makes it a 5 year loan again instead of the 4 we have left

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@pepsin it really does depend on your situation and how much you're struggling with the monthly payments. If you're majorly struggling it could be worth it. Once you get the balance low enough you could sell it for what you owe and break even.  

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@oscular you can refinance but only if the car is at value. I had to pay mine down to value before I could refinance it. It can’t be upside down.  

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@salvatore I've never had that issue. and I've worked in loans. That was never a contributing factor where I worked. It was a credit union. maybe they do things differently.  

Answer 6

Your husband is correct, I worked in the auto sales industry & even if you were to trade you’re still going to owe 5K & whatever else of the other car you are to buy. Definitely not worth it. You are better off keeping the car.  

Answer 7

I am very interested in starting this whole cash envelope life. When my tax money comes in I'm starting!  

Comments

@pepsin use your tax money to pay on your vehicle to help decrease what you owe. Especially if that’s what is hurting you the most.  

Answer 8

If the monthly payment is too much, it's still probably best to look into something much cheaper for a cheaper payment. I would look into Honda's or Toyota's. They tend to last longer so you can find something with more miles. Even with the 5k difference, if you buy a 5k or even 10k vehicle that becomes 10-15k, that payment will be much more doable than what you're paying for now

Answer 9

I have to sell mine back to the dealership. I’m relocating and it doesn’t make sense for me to take it. I’m using our tax return to pay off the difference. It screwed me. But lesson learned. I won’t be here again!  

Answer 10

Could you refinance? $450/ month seems high for a $20, 000 car.  

Comments

@exasperate we bought it at 28, 000 we just are down to 20, 000

Answer 11

Go to dealership and see what they will give u for it—if u have only had the vechicle for a year it’s a lot of years left of hold onto it

Answer 12

What is your current interest rate?  

Comments

@aestivate 6 I think

Answer 13

I would suggest biweekly payments or setting aside half and half. Unfortunately you’re stuck until it’s not upside down. I have an extensive knowledge as I’ve been in the car business my whole life. If you can make principal only payments as you can and get it to value, you can trade for a cheaper car or refinance for a better rate, but you really can’t do anything until you’re at the value.  

Answer 14

Sorry you are going through this but you have many options. In my opinion, The best option to keep your credit score good and by that. it means that you both would have to increase your income and pay this liability off or simply get caught up with any past due balance and sale this vehicle. If you and your husband decide to increase your income by getting a side hustle this will be a temporary sacrifice. so you both can just get ahead of this situation. Best of luck to you and I do hope you find something that will work for you.  

Comments

@nonfulfillment we dont have past due it's current

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Oh okay! Sorry, I misread your post as if you are past due on the balance. Well, This is even better news! So, then why don’t you just sale the vehicle if you no longer want to pay for it? If it’s causing you this much stress then sale it.  

Answer 15

Fellow Durango owner here! It’s our pride and joy and such an amazing truck. I would suggest using your tax refund to get ahead on payments. That way you can start sinking money into a savings to use for those months the payment is just too tight for you to pay. Getting even a few hundred ahead would help you feel more secure.  

Answer 16

You could do a voluntary repossession but you can not just give it back. Your credit will take a hit but it will look better than a regular repossession. I used to work for a repo company and we really only saw voluntary repos when there was a death or divorce.  

Comments

@selima7963 voluntary repo has the same effect as regular repossession and they will still owe. The bank will auction it off and they will owe the remaining balance! Thankspically they are auctioned off for next to nothing!  

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@benton that is both true and false. On their credit it will have the same impact but it shows up differently than a regular repo.  

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@selima7963 yea, same effect on their credit. Just bc it’s listed as some thing else doesn’t matter.  

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@benton people may still be willing to give a loan because they see it as a voluntary.  

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@selima7963 doubtful. It still means they couldn’t make payments whether they did it voluntarily or not. It will still hurt their credit dramatically which will also decrease the chance of a new loan or a loan with a lower interest rate.  

Answer 17

I’m also not sure if anyone said this but you could trade it in and roll what you still owe into your next loan and get a cheaper car.  

Answer 18

Can you refinance for a lower interest rate so you can pay it off quicker or lower your payments. My interest rate is 3. 19% for 60 months.  

Answer 19

Keep you car!  

Answer 20

I was trying to do the same thing and my car company said that I need to pay down it and then I could trade it in. I only had it for a year now and I’m really bored with it lol like I want my Honda Pilot back.  

Answer 21

Sell it yourself via private sale get a loan for the difference plus a little extra so you can buy a cheap car. Once you pay off the loan then work on saving up for a better car you can pay cash for.  

Answer 22

Refinance if that is an option

Answer 23

You could sell it and but a car for 5k and then have a 10k loan.  

Answer 24

Are you sure you only owe $20k? If you paid $450/month for 12 months you’ve paid $5400 only and you said you bought it for $28k. Anyway, can you use your tax money to pay it down to even, then trade it in for something cheaper? Sadly this seems like it always happens with cars unless you put a lot of money down, or pay it off much more aggressively than the monthly payment. Otherwise you pretty much have to pay out the length of the loan.  

Answer 25

Try to sell it private put for sale sign on it and see what happens! Doesn’t hurt never know? Like previous post sell it if you have a little left to pay get a loan or zero interest credit card to pay the rest off if you can to move on!  

Answer 26

450 is pretty good!  

Answer 27

I took a car to the dealership and because it was a “wanted car” they gave me a trade it which was applied to the loan and I paid the remaining $2500 and it looked on my credit as if I had paid it off. Although $450 isn’t much for a monthly payment. my SUV is almost $900/mth

Comments

@housemother9 that’s like a 1 bedroom apartment rate oh my god  

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@dynameter I have an aggressive payment plan as I drive a lot and I didn’t want to owe 1/2 the car still and need a new one. Car is a month old and there’s almost 8000km on it

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@housemother9 I drive a ton too. 1000 miles per week to my job: it’s ridiculous  

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@housemother9 omg that is insane. $300 more and it's my mortgage P&I lol what are you driving if I may ask?  

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@bice4800 Lynn Blandino a 2020 Nissan Rogue. although I have every feature including the upgraded leather seats in it and their largest warranty too. In total the car was just over 50k, I put 10k down and financed the 40k over 48m

Answer 28

**Long post** Call the company that you are CURRENTLY financing with and be honest with them about the payments being too high. Ask them if there is any way to LOWER the interest or REFINANCE with them. In 2002, I called my car loan company and basically asked them to come and reposs my car. I had it for 2 1/2 years @ $280/month and I simply could not make my payments anymore. My child support wasn't regular, my child care and my rent had all increased. I was already working fulltime and part time with 3 kiddies under 10 years old. Since I had been faithful with payments and had already paid alot in interest they refused to reposs my car because I was a single mom with 3 kiddies. They rewrote the loan from 10 1/2% interest down to 0. 5% with a new 5 year term. This lowered my payment to $140/month. I kept the car for FOURTEEN years and then gave it to my daughter, who had it for another 2 years.  

Answer 29

@obovate I guess I could try that.  

Answer 30

I'm doing a voluntary repo tomorrow. May take a hit but definitely not worth the price or stress. Do what you need to do

Comments

@palacio they did explain that even with a voluntary repo if they sell it for less than you owe you are responsible to pay the difference.  

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@ignore yup. I know. I have ways around it that help me!  

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@ignore they will sell it for less than you own. They sell it very cheap!  

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@swoon yes they do. They do it on purpose

Answer 31

You cannot like you said trade it in for a cheaper car. I just recently trade in a car that I was upside down on. Banks will not approve a loan with negative equity on older vehicles and vehicles with a lot of miles. This is what I was told, but maybe you could try!  

Answer 32

I agree with a lot of people you really aren’t paying a lot. I know of ppl who car note is 1k . I do know your feeling though. I had a paid tahoe and had a car accident and ended having to get one. Unfortunately the responsible person was homeless. Anyway, I pay 400 a month and I think all cars are like that when we get them on a lot. The value severely decreases when u drive away in it.  

Comments

@power I have NEVER paid more than 300 for any car I have bought and they all came from lots with no money down so 450 is CRAZY to me

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@pepsin yup unfortunately in my area it’s very common to pay a lot. I think it may also have to do with the credit. I got financed with a bank that I had dealt with before.