Help with selling my car!!

[lp19681]

Hi everyone.

I am on baby step 2. I have made my list of debts totaling $60,000 of debt...including everything, Sallie Mae loans, car loans, etc.

1. My question is do I sell my car, a 2006 Chevy Cobalt?

I bought it at Balise ReadyCredit in CT. It is a 7 year loan at 17% interest from Capital One Auto. I bought it in 4/2007 at about 13,000 and as of 7/9/2009 I have 10,200 left to pay on it. My payments are $302 a month. I know I am getting screwed on this deal.

a. how do I sell this car? I got hit on the side ( about 2,000 to fix) and I hit a racoon in the front ( about 300 to fix) and the engine light is on ( maybe 500 with labor to fix , EVAP sensor?) The Kelly Blue book with fair condition- 108,000 miles on it ( meaning it needs work) is about $5,600. So I need to save up about 5,000 to pay of the loan if the car sells at 5600 , but I have to keep going on my debt snowball, 2 creditors still call me.

b. has anyone been in this situation where you had to sell your car and you had a BAD car loan, but the car value was worth less than the amount owed on the loan? And how to deal with getting the title of the car for the person buying the car. I heard that Capitol One Auto does not release title until full amout is paid ( makes sense.)

I appreciate all of your help and any feedback.

Thank you,


Lou

[Greebo]

Hi everyone.

I am on baby step 2. I have made my list of debts totaling $60,000 of debt...including everything, Sallie Mae loans, car loans, etc.

1. My question is do I sell my car, a 2006 Chevy Cobalt?

I bought it at Balise ReadyCredit in CT. It is a 7 year loan at 17% interest from Capital One Auto. I bought it in 4/2007 at about 13,000 and as of 7/9/2009 I have 10,200 left to pay on it. My payments are $302 a month. I know I am getting screwed on this deal.

Oh. My.
I can hear Dave's reaction on the radio now...

17%??? That's CREDIT Card rates! Thats INSANE!

a. how do I sell this car? I got hit on the side ( about 2,000 to fix) and I hit a racoon in the front ( about 300 to fix) and the engine light is on ( maybe 500 with labor to fix , EVAP sensor?) The Kelly Blue book with fair condition- 108,000 miles on it ( meaning it needs work) is about $5,600. So I need to save up about 5,000 to pay of the loan if the car sells at 5600 , but I have to keep going on my debt snowball, 2 creditors still call me.

Are you current on your other debts? You don't start the snowball until you're at least current on your debts, or the ones you aren't current on are asleep.

Suspicion: If creditors are actively calling, you aren't current. That suggests you're not really ready to be in step 2 yet. You should be on step 0.

b. has anyone been in this situation where you had to sell your car and you had a BAD car loan, but the car value was worth less than the amount owed on the loan? And how to deal with getting the title of the car for the person buying the car. I heard that Capitol One Auto does not release title until full amout is paid ( makes sense.)

Lots of people. Either you come up with the cash yourself or you maybe refinance the car for what its worth at a better rate and take out a personal loan for the difference. Talk to your local bank - if they'll talk to you at all. What's your credit like?

With creditors calling, right now you should be selling so much your kids think they're next and your third child's name is Ebay. (To quote DR)

With creditors calling, you should be working extra jobs to get current, so you can get the hounds called off.

[ame="http://www.frugalvillage.com/forums/showthread.php?t=107294"]Expanded Baby Steps - Stolen from MYTMMO.com - Frugal Village Forums[/ame]
Study that thread - if you can't check off the items in order as done, you need to back up some and reevaluate your current situation.

[frugalwarrior]

Are you kidding around?
-The 3 year old car has $108,00 miles on it?
-I assume it is a loan where you paid all the interest first and now it's a wreck after 2 accidents?
So if i understand correctly you want to spend $2800. to fix a car worth $5600. and pay an additional $5000. to pay this loan off? Why
-Don't you have collision? If you have a loan you have to have collision?

Surely you realize you can't sell a junked car w/o a titile to someone and that you will default.

[borbastic]

Are you kidding around?
-The 3 year old car has $108,00 miles on it?
-I assume it is a loan where you paid all the interest first and now it's a wreck after 2 accidents?
So if i understand correctly you want to spend $2800. to fix a car worth $5600. and pay an additional $5000. to pay this loan off? Why
-Don't you have collision? If you have a loan you have to have collision?

Surely you realize you can't sell a junked car w/o a titile to someone and that you will default.

He will still owe the money if they repo the car. So just not paying is not really an option.

He does not have the title in his possession because the lender has it. It could still be properly titled and he can sell it if he wants to. But he will have to pay off the loan before they give him the title.
The usual procedure is you collect the money from the buyer, hand over the keys and give him a bill of sale containing a timely promise to deliver the title. You pay off your loan, lender gives you title, you deliver to the buyer.

[frugalwarrior]

What I was saying is the whole situation sounds serreal. I was asking if this is a joke.