I have this situation I would love some advice on. I am making payments on a 1999 Chevy Malibu. This car has been broken down for one year but I still owe $1400 on it. It needs a new transmission and I was told by the mechanic that it would be close to $2000 to replace the tranny, so at that time I decided not to fix it and travel by bus instead. The car has been sitting in my parents' driveway for the last year (thank god for parents).
But now I really need to get rid of the car. I am going to be traveling for a long period of time and my parents would like the car to go before I leave. Trouble is, the car is not worth what I still owe on it. While I have the money to pay it off, I've been saving this money like crazy for my travels. My monthly payments for the car are $136.88 and the interest rate on my loan is only 5%. I would like to sell the car for parts but I have no idea what I should sell it for, and yeah, I don't actually have the title because I'm still making payments. Oh, what to do? Can anyone give me some ideas, advice, suggestions? Any help would be very much appreciated.
How much would the car be worth if the transmission was fixed?
If you can quickly sell it for over $4000, then get it fixed, and sell the car.
Or perhaps use it on your travels - or don't you need a car?
How many quotes did you get to fix the transmission? maybe someone can fix it cheaper by using a second hand gearbox, or someting.
If the car could not be sold for this amount when fixed, then you've got to take a deep breath, and sell it for whatever you can get for it in its current condition. Regardless of what you owe on it.
What is it worth as is? check local classifieds, or craigslist, etc. You should be able to determine a price.
Can you borrow some money on an unsecured basis? This would allow you to pay off the current loan, and get the title.
You can then sell it to someone as an entire car for parts, or just sell parts parts of it from your parents house to try and get some money back , then get the rest carted away.
Selling to a wrecker is probably the worst option.
I recently needed to get rid of a car quickly, and was not successful in finding a private buyer. I was unable to sell bits of it myself.
So, I tried wreckers, who all told me that there was no demand for the typoe of car I had, and the parts were prety well worthless. I ended up virtually giving it to them. (I knew at the time I was getting stitched up, but I had no options)
After which I discovered they sold the headlights for $200 each, gearbox for $500, door for $300, etc.
If you can get an unsecured loan to pay off the car, and are able to keep up payments while you are away this may be the best option.
Then anything else you did would reduce the amount of the loan, or pay it out completely.
Or maybe the current lender will release the title if you explained the situation.
If you have no luck on the unsecured load, then you may have to use your saved money to pay out the car, or if possible get a loan from your parents.
Welcome to the world of setting priorities, and having plans mucked up.
good Luck, Eric G.
It sounds like a small, accidental fire may be in order.
LOL. I like the fire idea. I've been thinking about an unsecured loan. There are many credit cards that offer a 0% interest for the first 6-12 months for balance transfers, so I could pay it off using a cash advance from my existing credit card, then transfer the balance to a new one with 0% and continue making regular monthly payments. My only worry is that since I will be traveling (and I'm hitchhiking with my boyfriend around the US, by the way, thus no need for a car) something might go wonky with a payment and then my interest rate would soar. At the time I found out my transmission was bad I asked the credit union if there was anything I could do and they basically said no. But I could go to them again and just see if they have any ideas. I'm pretty well certain that the car is not worth fixing. In good condition I've seen other Chevy Malibus being sold for about 2 grand. I think I will go the credit union as a next step and see what ideas they might have, then look more into the credit card idea. Thanks for your comments!
Looks like the only option you have is to accept the loss. Sell it for whatever you can, add your own money and pay the loan off. And buy Honda next time - they don't depreciate THAT fast
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