Joblessness makes new loan unlikely
Dear Terry,
I drive a 2003 Dodge Durango. I owe about $14,500 on the vehicle. My loan is at 10.25 percent. Unfortunately, I am behind two months on payments of $400 each due to joblessness.
I thought about selling the sport utility vehicle for $7,000 and paying that amount on the bank loan. I will be stuck with another $7,000 to $7,500 to pay it off. I would look for another cheap, affordable car. I need your feedback so I can see what I can do.
— Teri
Dear Teri,
You can’t sell the vehicle for less than you owe without an agreement from the lender, which you’re not likely to get. Since you’re out of work, getting a loan to cover the negative equity on the Durango seems unlikely. Contact the lender to see if it will work with you before it comes time for repossession.
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