What should I do about a car I have negative equity on?
I hope this is the right subreddit to post this in.
Long story short, like some people, I traded in my car twice before I decided on the one I currently have. Each time I used financial aid money to pay for the down payment of about 3-4K each time. This was stupid, I know. Ended up tacking on about 6k in negative equity this time. I was okay with this because I loved the car and thought I would keep it for a very long time. Well because of a change in income due to Covid and other things, I really can’t afford it anymore, at least not right now.
The car is currently worth about 17k in trade in and 19-20k private sale. It has 2 accidents. I currently still owe about 23k on the loan and I don’t have the cash to trade it in and pay off the 6k difference. However, I do have a motorcycle I am currently trying to sell that is worth about 6k, but I’m not really getting any bites because no one has money. So I don’t feel like I can bank on this selling soon.
Because I need a car for work (delivering) I thought the best course of action would be to trade it in for something of far less value, knowing that the 6k would be tacked onto the price. This isn’t ideal but I would think it would help me get back on my feet. However I have been advised against this because I’m “going right back to the place that got me here in the first place”. I’m trying to avoid driving around a cheaper/older car in case something breaks down etc, so there isn’t a clear answer to me. I do have my degree and have a final interview for a job that pays close to 90k next week, but I don’t want to count on that either.
I would like to add that I have applied for an apprenticeship as an electrician in my area, but it takes time. Also I have had several other interviews for close to minimum wage jobs just to get by, and I may be hired for one soon. So I am making a good attempt to get back on my feet and get a better job.
Any ideas would be appreciated.
Thank you!
Submitted August 23, 2020 at 09:16PM by LifeBehindBards https://ift.tt/2CQw32O
