Author Topic: Upside-Down Auto Loan  (Read 4628 times)

co_mtn_grl

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Upside-Down Auto Loan
« on: January 28, 2014, 09:36:46 AM »
Hello Everyone,

I just joined the MMM forums today. I definitely have a debt emergency and one of the main contributing factors is my non-mustachian 2007 Toyota RAV4 that I am currently upside-down in (not literally! I have negative equity). Here are the numbers:

Owe: $14,500 @ 4.5%
Car's Value: $10 - $12K (based on KBB, NADA, etc)
Payment: $352/month

This is in addition to nearly $7K in credit card debt :-( The thing is, I do need a vehicle. The good news is I take public transportation for most of my commute to work (I drive about 2 miles to the station). It isn't exactly safe to ride a bike to the station due to the 6 lane highway I would have to cross (yeah right).

Luckily, my car is financed through a credit union. I'm thinking of taking it to Carmax to get it appraised and go from there.

What is the best way to get out of this expensive vehicle and into an affordable, reliable, fuel-efficient one?

Thank you in advance for reading and taking the time to respond!