#UnderwaterCar #CarAccident #FinancialRelief
## What to do with an underwater car after a car accident?
### Sell your car to a dealership
If you have an underwater car, one option to consider is selling it to a dealership. While you may not get the full value of the car, this could help alleviate some of the financial burden.
### Trade in your car for a cheaper option
Another potential solution is to trade in your underwater car for a more affordable vehicle. This could lower your monthly payments and help you get back on track financially.
### Refinance your car loan
If you are struggling with high monthly payments, you may want to consider refinancing your car loan. This could potentially lower your interest rate and make your payments more manageable.
### Explore a voluntary repossession
If all else fails and you are unable to afford your car payments, you could explore the option of a voluntary repossession. This would involve returning the car to the lender and having them sell it to recoup some of the debt.
### Seek advice from a financial advisor
If you are unsure of the best course of action to take with your underwater car, it may be beneficial to seek advice from a financial advisor. They can help you assess your options and determine the best solution for your unique situation.
In conclusion, having an underwater car after a car accident can be a stressful situation. However, there are options available to help alleviate the financial burden. Consider the above strategies to determine the best course of action for your individual circumstances.
Anything you do to get rid of it will result in you still having to pay the difference. Get a 2nd or 3rd job and pay it off faster.
If you have GAP, park it in the wrong neighborhood and hope it gets torched.
TLDR: stuck with the car, reduce monthly costs and attack your debt like your life depends on it.
You make plenty of money to get out of this hole but you need a serious life style change.
You are probably stuck with the car, you could try and transfer the loan to a cheaper vehicle but you will be stuck way under water either way.
No going out to eat no vacations. Cut up your credit cards use a debit card to pay for food and gas.
At your income level you should be able to get out of that hole in a few years.
There isn’t some easy get out of jail free card here. You put in the work to get to a place where you make good money so you at least have a huge head start.
If your job gives you any skills that can be used for freelance work see if you can pick up some side work to generate some extra income to speed up the process.
Sell any assets that you can and reduce all your monthly costs.
If you sit down and do the math on your net income and your current debts/monthly expenses you can probably find a lot of money that’s going down the drain. Unused subscriptions/booze/eating out to often, expensive gym etc….
I would start there you can post your monthly costs and income here and people will be able to give more direct advice.
Sadly there isn’t a happy
Path for you. “Maxed out all over” is never good and sounds like what you need is a zero based budget so you know every dime coming in and going out and focus on your high interest debt and dig your way out. It’s a lot more fun getting in to debt than it is getting out, but there are no magic bullets. This is a great sub that can offer budget advice etc. wishing you the best on addressing being maxed out all over.
This is why you put half down. Or don’t buy a 65k car. That’s a lease and a toro opportunity all day.
You sell it, you take the hit. There’s no way you’re going to get someone to pay 45k for a car worth 24. As everyone else has said, there’s no easy way out of this. Whatever you do, you’re still going to owe money for a car you don’t have.
If you’re thinking of getting rid of the car to reduce your loan amount, then buy another one because you still need a car, don’t. You’ll end up with a worse quality car and will still have a big debt to pay off. Unless of course the car is no longer any good, but you said it’s still worth 24k, so I assume it’s still in good condition even factoring in the accident.
Your best bet is to examine your expenses and make adjustments to start paying off your debts.
My understanding is a car purchase is not an investment so should not be treated as one, and should just ignore the value of the car on the market. The depreciation is very heavy at the first several years too.
Wow. What car is this? Tesla? That’s a huge depreciation.
You can get rid of the car if you can get a personal loan for the difference, that might be a sensible option depending on the interest of the car loan and proposed personal loan. If you do this you should be looking to switch to a MUCH CHEAPER car. No more expensive vehicles, look for something cheap as possible but still reliable. Something like a Corolla with $100k miles.
How much is your total debt, car loan plus credit cards and anything else? What is your current income? Do you have any assets?
Chapter 7 Bankruptcy?
You would have to surrender the car, but you would be out of that loan, if you qualified.
Why do people buy what they can’t afford? Live within your means