getting out of upside down car payment...?

O.K. long story short. Daughter is getting a divorce.

Need to get husbands name off car.

Car worth $10.000 and owe $17.000

Should she trade it in and have the balance put on her new car?

Or should she let him have the car and get something new?

What would be the good and or bad of each?

HELP!

Update:

Yes both of their names are on the original loan and that is why she is getting another car, to get her name off the loan.

6 Answers

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  • 1 decade ago
    Favorite Answer

    Going into more debt to get out of debt is never a good option. Since she is going through a divorce, she must have an attorney who is protecting her interest, and that would be the person to ask about who should get the car and the obligation for future payments.

    I would think the best option would be to give him and car and the responsibility for making all future payments, and take her name completely off the car. That would protect her credit the most. Then she could buy a decent used car, I wouldn't suggest new at this point in time.

  • 1 decade ago

    If she can get her ex-husband to take the old car and the payments, then that is her best scenario.

    All in all, whoever gets 'stuck' with the upside-down loan should not trade the car in or they will end up in even more debt.

  • Anonymous
    1 decade ago

    If both their names are on the loan and the title is in both their names, the only way to get the vehicle out of one or the other's name is to pay off the loan. If both are on the loan, ex-hubby gets car and stops making payments - lender comes after both of them.

    I would never advise anyone to roll $7,000-$10,000 in nagative loan equity into another loan. That's paying interest on interest.

  • Anonymous
    1 decade ago

    That's a bad assumption to think that $10K can just be rolled up and put into another vehicle.

    Since the daughter will have to settle for a decent beater, I wouldn't personally pay that cost plus $10K over that, lender financing issues aside.

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  • 1 decade ago

    What if he keeps the car and does not pay for it. Does your daughter have to pay for it? Well I say trade it in and get a new one.

    That's what I think you should do.,, But is your call

    Good Luck

  • Anonymous
    1 decade ago

    If he is willing to take the car and the payment, give it to him...

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