Need Advice: Selling financed car (upside down)

[Astig02]

Hi, I have a 2011 5DR GT with 65k km. When bought, I was excited and did not care much on price so paid way more than comparable vehicle.:bang
Anyhow, I am trying to eliminate debt as much as possible. I know I am upside down on the loan. I'm 3 out of 7 years on the loan. According to KBB, car is worth approx 15K (ideal) and remaining car loan is 21K from Scotia Bank.
I would like sell the current car, get beater car and paid off the remaining loan using line of credit/loan.

1. Is this even financially "smart"?
2. Can i trade for cheaper car, and get the difference to pay for the current loan and continue loan (but now much less)?
3. Where can sell car without buying new one (except private)?
4. Is private sell my best option?

Thanks for the future advice and opinions!

[slam525i]

My advice:

You already incurred the debt the second you bought the car. Unless you absolutely can't afford the payments, or you need to clear the debt to finance some other necessary purchase, you're not gaining anything by selling the car.

Selling the car now and buying something else, you may end up with something that costs more to maintain/keep, and you end up spending more to maintain than before.

Of course, if you do sell it, and buy a $2000 dollar beater and can keep it running by working on it yourself, then you might come out ahead, at least in the short term. That might give you more manoeuvring room. In the long term, like I said earlier, you already lost the money when you bought the current car.

[m_bisson]

15 grand seems high. You'd be lucky to get that.

Want to eliminate debt? Pay off your current car loan and drive the car into the ground.

[CarLadyLisa]

The problem here is you will have a difficult time selling the vehicle privately when it has a Lien attached to it. You would have to pay the loan in full. For example...If someone gives you the 15K you will have the $6000 still owing to the Bank. They will not remove the lien from the car until that is cleared up. If you don't end up paying....the new owner will have their car Repo'd. A huge risk.

Remaining Balance. If you are thinking of transferring the remaining balance to a L of C you will be paying significantly higher interest with no set repayment frequency. Meaning, you may carry that debt load for a longer time and be charged more in interest because of it. Not a good idea.

As m_bisson mentioned. Pay the loan off and drive it into the ground is really the best way. A dealer can put you into a cheaper car to help lower payments, but you will end up carrying $6K more into that car. Then the vicious cycle continues...owing too much versus current value.

My advice to the 7 year car buyers....If payments are tight....Lease. There is no long term commitment. No unexpected expenses. New car more often. Low payments.

I'd stick it out with the car. See if you can lower expenses in other areas.

[maxewell12]

The most you will get for that car is about 9-11k for it! If you have time and patience i would sell privately. If you want to reduce the debt you have, go for a way cheaper car.

[staax]

I have to agree that you wont get 15k for your car unfortunately. 12k I would say would be a fair price.

IMO, selling the car will still leave you with 9k on your loan, and a beater will run you from 2-4k saftied and etested so even with a piece of crap car look to own up to another 13k depending on how you purchase this car.

I would just keep the car unless you can't afford it.

[Reddie1337]

I just sold my 2012 with 35000km on it, after an accident and I got $13900. Honestly because of how much you owe, I would say keep it forever.

[fruitloops]

It still doesn't make sense to me why people don't just buy beaters until they can actually afford something nicer. Debt isn't a thing you necessarily want to be in, and almost everyone has debt nowadays.

[iconicrocket]

You need to consider how much your interest rate is on the financed loan versus your line of credit.

[loki]

Paid off 3 yrs and still owe 21k?

Damn...

[Astig02]

Paid off 3 yrs and still owe 21k?

Damn...
Yeah![emoji30] sucks to be! 4 more years of regret and it wil forever remind me of my mistake. A very expensive mistake.

[p-o-g-i]

So I've been in this situation before.

In one instance, I still had money owing on the loan, and the amount the person paid me did not cover the balance. When I went to change the ownership of the vehicle, the DMV wouldn't allow it as it still had a lien on it. I ended up paying the remaining balance to close the loan.

In another instance, I traded in a vehicle that still had a lien on it to get another car. Not an ideal situation as all the finance company will do is working in the money outstanding on your loan into the loan for the new car. Basically raising the monthly payments.

2 situations I never want to be in again and would not wish on anyone.

Everyone has financial hardships; just try to deal with it the best you can by making smarter choices.

[ds2chan]

If you can afford the payments on the loan then one suggestion would be to keep the car parked somewhere safe (parent's garage perhaps?) and change your insurance to be for things like theft, fire, etc. Take public transit or whatever your plan is and hold onto the car for a bit and see how things are in 6 months to a year.

Of course you'll still have to pay off the loan but at least insurance should be much lower.

[Astig02]

With much more thought, i decided to keep the car.

Selling privately and dealing with the outstanding loan is just a headache.

As mentioned above, i already lost money the moment of purchased so i'll keep it until i can afford a "better" one.

For now, i am looking for a part time job hopefully weekend job. If anyone know someting,. I will appreciate if u can let me know.

Thanks for all the feedback!!

[Fack_Dude]

With much more thought, i decided to keep the car.

Selling privately and dealing with the outstanding loan is just a headache.

As mentioned above, i already lost money the moment of purchased so i'll keep it until i can afford a "better" one.

For now, i am looking for a part time job hopefully weekend job. If anyone know someting,. I will appreciate if u can let me know.

Thanks for all the feedback!!

Tim's is hiring.

[Astig02]

Tim's is hiring.
Not being picky but I worked there for 5 yrs already and i think that was enough.

I would like to stay away from fast food as much as possible. I do not mind general labor or retail.

[jaimie08mazda3]

Temp companies are good if your looking for something. Check out Randstad. Went through them for a year before I got my current job. Or a grocery store. One of my favourite jobs actually.

[Astig02]

Temp companies are good if your looking for something. Check out Randstad. Went through them for a year before I got my current job. Or a grocery store. One of my favourite jobs actually.

I'm still in contact on the agency that i went through. Got my current job on the company that they placed me as a temp.
It is quite hard to find a temp job on weekend only specially for manufacturing since pretty much everything is in the west end.

[m_bisson]

Dude, some people drive hours to work each day. Suck it up and stop being such a prissy little brat.

No wonder you're in trouble financially...

[jaimie08mazda3]

2 hours a day right here. In the end you are doing it to have a car and have the other things in life. If it's worth a 30 min drive giver a go!

[Astig02]

Dude, some people drive hours to work each day. Suck it up and stop being such a prissy little brat.

No wonder you're in trouble financially...
I here you. I just want to be more "efficient". If i drive more, i need gas plus you are basicaly wearing down the car. I just am trying to find something close to my area if possible.

As much as i want to pay off debt, i do not want to kill myself doing it.

2 hours a day right here. In the end you are doing it to have a car and have the other things in life. If it's worth a 30 min drive giver a go!
Good for you. I am also would like to stay within 30 mins drive.

I have applied for agency and other job openings but somehow I do not get a call.

Can i still be "over qualified"?

[midnightfxgt]

SomeGuy - Reminds me of your thread lol

[midnightfxgt]

1. Is this even financially "smart"?
2. Can i trade for cheaper car, and get the difference to pay for the current loan and continue loan (but now much less)?
3. Where can sell car without buying new one (except private)?
4. Is private sell my best option?


1. Paying $6-10K for a car you will no longer own is not usually financially smart. Without knowing your financial situation, no one can say for sure.
2. Depends how the car was financed. You will still owe money on the loan and have a car that is older, and likely to need more repairs etc.
3. Anywhere. Don't expect top dollar though.
4. To sell a car, without purchasing a new one? Usually.

[XTOTHEL]

Let's think about it:

You currently owe 21K

Option 1 - Keep the car:
Make monthly payments
End of the day, owe 21K

Option 2 - Sell the car, buy beater:
21K owing - 15K estimate = 6K owning
There is also the cost of the beater car.
So you end up having to pay the 21K + cost of the beater car.
Plus, the possibility of repairs needed for the beater car, time of work missed because of it, etc.

Another option you could explore is not owning a car at all. Carpool with some people from work if you truly want to be debt free.

[S.F.W.]

1. Paying $6-10K for a car you will no longer own is not usually financially smart. Without knowing your financial situation, no one can say for sure.
2. Depends how the car was financed. You will still owe money on the loan and have a car that is older, and likely to need more repairs etc.
3. Anywhere. Don't expect top dollar though.
4. To sell a car, without purchasing a new one? Usually.


Let's think about it:

You currently owe 21K

Option 1 - Keep the car:
Make monthly payments
End of the day, owe 21K

Option 2 - Sell the car, buy beater:
21K owing - 15K estimate = 6K owning
There is also the cost of the beater car.
So you end up having to pay the 21K + cost of the beater car.
Plus, the possibility of repairs needed for the beater car, time of work missed because of it, etc.

Another option you could explore is not owning a car at all. Carpool with some people from work if you truly want to be debt free.


People read the entire thread - post 21 not too far above starts
"With much more thought, i decided to keep the car. "

[midnightfxgt]

People read the entire thread - post 21 not too far above starts
"With much more thought, i decided to keep the car. "

Read the thread, still offered advice. With 7 and 8yr car payments, this is all too common with people who do not understand how money and credit works.