Maybe this is a good forum for this: Any advice on how to get rid of a car that's become a bit of an albatross? Fairly newer car, 2017, low mileage, perfect condition. Got completely fucked on the payment plan for it where they tacked on some stuff that I turned out to not even need, plus a sky-high interest rate because I let my credit get iffy. So at this point I'm gonna end up paying a lot more for the car than it's actually worth if I keep it.
Don't really need a car at this point so I'd like to get rid of it. Maybe I'll get something inexpensive to replace it, maybe not. Either way what's the best way to deal with something like this if you're inept enough to get into this situation like me? Some ideas:
1. I could sell the car to a private owner for a lump sum, which would probably pay off about two-thirds of what I owe at this point, maybe less. So I'd still be in a lot of debt and wouldn't have a car.
2. I could give it to someone else and let them take over the payments etc, though most people wouldn't want to take it on.
3. I could trade it back in at the dealership and get a better deal on something less-expensive, though I'd still owe a lot on this one plus I'd have a new car to pay for.
4. I could file for bankruptcy and just let the bank take it, which I'd be alright with at this point. Though it'd (further) trash my credit. Plus I'm not sure if I even can file for bankruptcy given that I'm not actually bankrupt by any means.
5. I could take out a phat insurance policy against arson, torch the car, then say the Antifa did it and it'd be totally believable. Potential downsides include jail time.
6. I could just straight-up pay off the entire car, though I'd be ponying up a lot more than it's worth, chalk up the lesson, and then try to get back as much of it as possible on a resale. This is the least-optimal solution given current circumstances though. Money isn't flowing like it usually does and might not be again for a while.
TL;DR: The bank fucked me, I don't really know how to handle car stuff to begin with, any advice appreciated.
If you dont want the car anymore, the best financial decision for your future use of credit would be to take the hair cut, and sell it outright to a private party, and add your own money to pay it all off, right there. I dont think the bank will give up the title to a new owner without the loan being paid off.
If you do want to go ahead and keep it, just as others have said, go to different banks and see if they will give you a better rate.
Alternatively, you can also just walk away from it, tell the bank you aren't going to make any more payments, and let them repo it (ask them where they want you to turn it in). Of course, they will report this to the credit agencies. There is no debtor prison and they cant garnish your wages. You might be hounded by collectors, so YMMV, but honestly, with all the scam bullshit calls we get now days, debt collectors would one voice in an ocean.
Regardless, you should call/email the bank and tell them you can no longer afford the payments (even if it's not the whole story). First ask them what they can do to make it more affordable. If that wont work, ask if you can sell it for market value to a private party, give them that money, and make a new loan with the existing balance. If that wont work, ask them what repo service they wish for you to turn the vehicle into.
Selling it in general will probably be difficult as this juncture, as the vehicle market should be proper fucked right now. In addition to the corona shit happening, Hertz is, or about to flood the market with a bunch of cars, from Corvettes to Corollas. If you want to try, you will need to know the going rate for it. I have been out of the market for a car for 6 years now, so I guess craigslist is total shit now; so Ebay might be the best place to get a running price, if its a popular model. Record the prices over the course of a week or more, and the low side will be close to the non-dealer price.
