Hi everybody,
My girlfriend financed a 2015 Kia Sportage. She has paid about $6,500 on it, but still owes about $9,000 on it. This financing started in 2018 and is supposed to end in 2023. She has two payments a month of $124. The Kelley Blue Book price of this vehicle is $7,298 - $8,403.
She's tired of these payments and wants to get a used car. Here is what I've gotten from the research I've done.
1) She can go back to her car dealer and turn back in the car, but will they offer her even close to the Kelly Blue Book price?
Example Scenario: If we go with this option, she would return the car and receive $7,000. Then she'd use money to bring the $9,000 she still owes down to $2,000? So now she owe's $2,000 and has to purchase a used vehicle. So she'd owe $2,000, then pay another $3,000 for a used car. So she'd be cutting down her payment from $9,000 to $5,000 (the $2,000 remaining payment + $3,000 used car). Did I play this scenario out right in my head.
2) Refinancing. We definitely won't do this.
3) We could sell the car via other marketplaces and then run a similar plan to option #1.
4) Sell the car and loan. Probably won't happen.
Any tips or advice for how to get rid of this financial burden? Any tips from those who have gone through this process?
Thanks everybody.