QuestionI have a car that I can pay but I just got layoff, and I prefer not to have this loan on my neck, damaging my credit is not an option, the loan balance for the car is $20,500, monthly payment of $448, current retail value is $16,000. Can I go to a dealer and tell them take my car and take this $4,500 and put it in your name, and keep my credit clean? I just want to get this car out of my name and pay the difference in value.
AnswerFirst of all, no dealer will pay an individual "retail value" for a vehicle, especially in this economy. Dealers already have too much used-vehicle inventory from trade-ins, so they're only going to outright buy a vehicle that they can absolutely steal (they'll be thinking approx. half of retail value). Second, have you considered talking to the bank about re-negotiating the terms of your loan? They don't want you to lose the vehicle, either, because that would mean one more repossessed vehicle they have to re-sell and lose a ton of money on. Like you said, you can pay on it, but wouldn't a lower monthly payment be a reasonable alternative? Considering what you owe vs. what the vehicle is worth, I doubt you'd be able to sell it yourself and pay off the balance. And if you can afford to part with $4500 cash right now, why not keep both the cash AND the vehicle and put the money toward the monthly payments? That $4500 is nearly 10 monthly payments, even more if you can get the bank to lower the payments. I hope I'm not coming across as harsh or judgmental, I'm just being realistic about your options and honest about offering usable advice.
