If I owe more on a car than it's worth, can I sell it and take a loan out on the difference (loss) between what the car is worth and what I owe?
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Anonymous
ANSWERS: 2
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I dont get it...if you still owe on it, you already have a loan. When you sell it you send that money to the people you have the loan through and then you only owe what's left. Right?
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if you can get approved for a private loan (HIGH interest rate) then yes you can get a loan to cover the difference. BUT since the bank has the title, it's not really YOUR car. To get that title, and transfer it to the new owner, the first loan will need to be paid off in full. some dealerships will offer to pay off the difference, but its the difference between trade in value and loan balance. and you'll have to buy a car from them. they'll put that difference on the new car loan and then you'll be even more upside down with value of car versus how much it's worth. im in the same fix...
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