This car is killing me!

[agent_black]

Hello Mustachians,

This is my first post, so Ill give you all some background.  I work as a mechanic.  I hate it but it pays the bills.  I recently decided that I would give real estate a try.  Lots of people get rich doing that, but with school I just really don't have the time and didn't want to accept that.  I bought a rather nice car, a 2012 Hyundai Sonata because it would be presentable for my new-found work vs the riced out 99 Corolla that my girlfriend is now driving.  and now on to the point....

I don't use this car nearly as much as I thought I would, because I don't do much real estate, and without the real estate income I can't really afford the car.  Truth be told, I don't even want a car.  I work 14 miles from where I live so I don't pedal,  but I still ride.  I am pretty much convinced that as long as I have a motorcycle and computer to rent cars on relayrides I don't even need a car. 

The problem is, I financed the car and I owe more than its worth.  Is it possible to trade down, or sell it for whatever it sells for and make payments until I'm free?  I really don't know how to fix this but I know my Mustacian journey cannot begin with this $305 car payment hanging over my head, not to mention insurance.

I know I screwed up, but how do I fix it?

[gooki]

Sell it and pay back what's left.

[kendallf]

Most banks won't give you the title for a sale unless it's paid in full.  Your best option may be to save as much as possible for the short term until you can afford to make up the difference between what you owe and what it will sell for.

[agent_black]

Most banks won't give you the title for a sale unless it's paid in full.  Your best option may be to save as much as possible for the short term until you can afford to make up the difference between what you owe and what it will sell for.

The problem with that is that I literally can't save anything as whats left over from my budget is a measly $60 a month.  By time I save up the difference, the loan will be paid off.
It just occurred to me that I may be able to have the loan taken over.  Is that something that banks still do?

[Paul der Krake]

The problem with that is that I literally can't save anything as whats left over from my budget is a measly $60 a month.

Holy cow! If that really is the case, you have bigger problems than a car loan.

How much do you need to come up with in order to sell the car?

[agent_black]

After talking to the credit union it looks like I can take out a share secured loan which will cover what is left after I sell the car.  The representative told me that I can stretch it out to a minimum payment of $30 per month.  That will work.  If I save what I was spending I'll be car debt free in one year.

The problem with that is that I literally can't save anything as whats left over from my budget is a measly $60 a month.

Holy cow! If that really is the case, you have bigger problems than a car loan.

Yeah...  I was saving about 25% of my take home pay before I bought this stupid car.   I really don't know what the heck I was thinking.

I'm not really sure how to save the additional 25% I need to mustache it out, but being rid of the car payment is a start.  Also, my budget is not exact, I overestimate everything unless there is a set payment.

[Hugh H]

Bad situation, but at least you have the asset.

I'm stuck paying a loan for a 30k SUV my ex-wife bought and took with her.

[agent_black]

wow, that really sucks.  I know nothing of marriage law.   Why is it that you are stuck with the payment when she has the car?  Did the court consider it a gift?

[DocLago]

Id see what your options are with a place like CarMax or something.  This is why I have had a fundamental problem with car loans.  In most situations, if you cannot afford to do something you just don't do it.  With a car or a house, you have no choice, you're underwater for a couple years(longer on the house) just to sell it for what you owe. 

At least with a house you can get lucky and the market will make it easier for you to unload your burden, but the second you drive off the lot with a car, you're stuck paying off 30-40% of its sticker just to break even.

Another thing you can look at is securing a loan for the difference of the value of the car and what you owe on it.  At least then you're just looking at a loan for the difference.  Which based on terms and timeline, will be a big chunk of change less.