SERIES: Sell Car With Negative Equity – Part 5

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 1 – Recognize How Much A Car Really Costs

Part 2 – Determine Your Car's Negative Equity

Part 3 – Sell The Car With Negative Equity – Option A – Pay Off The Balance

Part 4 – Sell The Car With Negative Equity – Option B – Transfer The Negative Equity Balance

Part 5 – Benefits Of Selling A Car With Negative Equity

Lower Debt!

This is obvious, but it is a wonderful benefit of eliminating the car with negative equity.  In the example used in this series, debt has been reduced by $18,000 in Option A or $12,000 in Option B.  Either one is fantastic!

Money Freed Up Every Month!

This is also obvious, but the monthly payment will be eliminated or vastly reduced.  This allows one to have more margin in their monthly finances to give, save, or invest (three of my favorite parts of money!).

Not so obvious is the reduction in other fringe expenses.  Car insurance will go down.  Car property taxes will go down.  Gasoline consumption will go down.  Car repair costs will go down.  These can total up to hundreds of dollars in savings each month! 

Margin

When all of the money leaves as soon as it is earned and one is living paycheck-to-paycheck with zero margin for life to happen, it creates serious stress.  By eliminating debt and its related payments, one gains tons of financial freedom and drops loads of stress.

Final Note:  I know that this stuff is HARD, but I am convinced that financial freedom is worth all of the effort that it takes.  When Jenn and I embarked on our debt freedom march, it seemed like it would take forever.  Fourteen months later, we were debt free.  That was in February 2004.  We have never looked back.  No car, TV, boat, lawn mower, or Llama has looked good enough for payments.  Frankly, a new house does not even look good enough for house payments.  We have worked way too hard to achieve financial freedom to fall back into the debt trap.  It has been SO WORTH IT!  You can read more of my family's story HERE.

One Response to “SERIES: Sell Car With Negative Equity – Part 5”

  1. broke September 21, 2008 at 1:09 am #

    What if your credit and/or income isn’t good enough to exercise either option A or B?

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