Expert: David - 4/23/2009

Question
Hello,
 I have an 05 impala. i purchased the car when i had freshly turned 18. i had no credit and nobody else would give me a car. Mike ALbert offered me a car financed through credit acceptance, and i jumped on it. The price was 15,500 for a car with 110,00 miles on it. now that i am older and smarter, i need to get rid of the car. the payments are too high and the car i snot worth it. i still owe 7500 on it but the car is only worth 1500. no one will take it as a trade or buy it. i feel that my only solution is to let the company repo the car and purchase a much cheaper cash car. any suggestions?

Answer
Hi Shyalia,

The only suggestion is to increase your payments until you get the original loan down enough to trade it in.  Then moving forward, don't purchase a car that has a longer payment schedule than 3 years.

Even if the car is repo'd you still owe the money.  They'll sell it at auction and reduce the amount you owe  by what they sell it for.  Than it will go to collections and your credit will get worse and buying any car at all will be difficult.

To keep situations like this at a minimum you should maintain a 700+ credit score.  If you are below that number you may want to look at doing some credit repair.  Visit www.financialscoringsolutions.com for that.  Thanks.

Dave
219-718-8566