I recently got into 2 car accidents and my insurance jumped to $250/mo. I can't afford it, what can i do?
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I was told i need full coverage because it is a new car.
i owe ,000 for my loan (including interest) on the car still, but now after accidents, I’d assume it’s only worth ,000.
Should I continue making payments on the car but not drive it?
Or sell it, buy a cheap used car with the money, have cheaper and affordable insurance, and continue to pay off my loan?
Or are there any other options I’m missing?
I really don’t know what to do and my registration is expiring soon because I have no insurance now.
HELP
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Howard L said:
I guess the first thing to do is don’t guess that it’s only worth $6,000. Try to get some appraisals. Use a professional appraiser, not a dealer who will try to screw you. It might be worth more than your estimate so the hole you’re in might not be as deep as you think it is.
You can’t sell it because you don’t own it. The bank does. If you stop making payments they will repossess it but you will owe the money for the difference between what you owe and what the car sells for at auction plus the repossession fees. At auction the car will sell for much less than you could sell it for. If you don’t pay what you owe they will get a court judgment against you and you will end up paying what you owe eventually. In addition if they repossess it you’re credit will be badly damaged. Between having a court judgment against you and a poor credit score it will be quite a few years before anyone will extend you credit again.
I think your best option is to pay what’s owed on the car if you can and then sell it for whatever you can get for it. If you don’t have enough cash to pay off the $13,000 you could find a buyer and come up with the cash for whatever the difference is between what you owe and what you get. If you go to the bank with the buyer and pay off the loan they will release the lien on the title so you can sell it. If you can’t pay the loan off there are no good options. If you simply park it the car will still depreciate with age so it still costs you money for a car you’re not driving.
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0February 22nd, 2010 at 9:38 am -
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