Upside Down On Vehicle Loan
Can anyone offer any suggestions regarding disposing of a vehicle? I have a vehicle with a fair market value of about $14,000 and a loan in the amount of about 21,000 at a very high rate of interest. If I turn the vehicle in to the finance company, what will become of the balance, will they come after me for it? I am trying not to declare bankruptcy, if I could get out from under this vehicle, I would be fine.
Answer:
First: It IS possible to re-finance car loans just like homes so consider that. Second: Check your contract to see if it has GAP insurance. (You may have bought it or it may have been included for free). GAP insurance covers your situation if something bad happens to the vehicle and it is destroyed or stolen. Yes but if anything were to happen to the vehicle other than a real accident you have allot more trouble than being $7000 upside down. It's called insurance fraud. It's illegal and immoral.
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