Hey guys, first time posting here but I’m just looking for any advice. I feel like the only thing to do is throw as much money at this stupid loan until I can sell the truck for what It’s worth unfortunately, just wanted to see if anybody had any other ways to go about this.
I’m going to try and keep this short and sweet.
Basically, I use to have a 2007 gmc sierra, I owed 24k on it, I traded it in on a 2016 Chevy Silverado that was listed for 42k. There was some money left over on the other loan that rolled over into my new one and in total the new loan was around 52k. I have it paid down to about 45k now and I’m tired of paying the high payment and interest rate, I was young and stupid and has the mindset “I have to have the coolest rig while I’m young to fit in”. It’s biting me in the ass now and I realize this was never the way to go. I believe I could sell the truck for what it’s worth (probably 35k) I don’t have 10k to just pay the difference unfortunately. How do I go about getting out of this vehicle loan? Any help would be appreciated, hate comments are fine too because I realize how dumb I was for doing this lol
Thank you!
I impulse bought a vehicle and I feel I’m screwed
byu/Leather-Tip-4978 inpersonalfinance
Posted by Leather-Tip-4978
6 Comments
the only thing another loan would do is put you in even more debt. Rolling debt into a loan got you in this mess, doing it again won’t get you out. Pay it down as fast as you can until the balance is what you owe and then consider selling it and getting a much cheaper vehicle. or drive it until the wheels fall off. There’s no other way I can see out of this.
You need to just suck it up and pay it off, at the end you’ll have an asset which you can sell and perhaps put some of the cash back into savings and buy something way less expensive.
Also Depending on where you are and the type of finance you might be able to walk away and hand the vehicle back when 50% of the value of the contract is paid…. but this depends where you’re located and what type of finance.
There’s no magic.
Write out a budget.
Optimize income.
Optimize expenses.
Allocate income to debt as you can.
Consider exploring refinancing if you can identify a possibility for a lower interest rate.
the answer is try to refinance at a better rate, pay as much extra against the principal as you can, and learn this lesson well.
By the way – you’re not alone in this. I know tons of guys in my industry (grown men well past their 20’s) that still go into insane debt on pick up trucks because of the look and how it makes them feel.
This is how people stay poor. A $52k loan for a 2016 vehicle should have been a red flag ……heck, $24k for a 2007 is as bad if not worse.
Take this as a lesson and payoff your loan…don’t take on more
Your best bet is to aggressively pay it down and condemn yourself to an otherwise frugal lifestyle so you can make extra payments. Alternatively, you could seek out a personal loan for the difference between your sale price and your payoff amount and take the bus for a while.