Welcome to the latest series – "Sell Car With Negative Equity"
The fact that most cars drop in value by sixty percent in the first four years causes an enormous part of the American population to struggle with huge car payments and an inability to rid themselves of the car without acquiring yet another new car and rolling in the negative equity to the new loan.
It is my hope through this series, that you will be equipped to sell a car that has negative equity.
Part 2 – Determine Your Car's Negative Equity
Part 4 – Sell The Car With Negative Equity – Option B – Transfer The Negative Equity Balance
In this series, we are assuming that we have a car with an actual value of $12,000 but the loan balance is $18,000. This means that the car has negative equity of $6,000.
This is quite the lovely situation, but it is possible to make the car leave.
Obtain A Signature Loan From The Bank or Credit Union
One usually must have decent credit to obtain a signature loan. Obtain a $6,000 loan from the bank. Next, find a purchaser who is willing to pay $12,000 for the vehicle. Use the signature loan money to pay off the negative equity portion so that the title is clear. With this one transaction, the debt has been reduced by 66% – from $18,000 to $6,000!
Transfer The Negative Equity Balance To A 0% Credit Card
I really do not like credit cards, but I really do not like huge car payments and car loans either! If one has the option to roll the negative equity to a credit card at 0%, it will allow the car to be sold and all of the subsequent payments on the remaining $6,000 will go directly to principal! I have also seen several credit cards that offer 2.99% for the life of a balance transfer.
Option B does not entirely eliminate the debt or the payment, but it will substantially reduce it! It will certainly help one's journey to financial freedom obtain serious traction.
In the final part of this series, I will be sharing some side benefits to eliminating a car with negative equity.
Read the entire "Sell Car With Negative Equity" series HERE.
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