How can I get out of a car loan that is currently over under?


An over under car loan is basically a loan where the balance that you still owe to the lender is more than the current value of your car.

At that stage, selling of your car or getting out of the loan can be a very tricky task since you would still owe money to the lender even after you sell off the vehicle and use the money to repay the loan.

How can you get out of an over under car loan?

It is possible to reduce your overall debt on the car loan in a short time so that you can get out of the over under car loan. Given below are the few steps that you will have to follow:

* The first thing that you will have to do is to find out the exact value of your car currently. There are several ways in which you can do this and many reliable online tools available. You can get more benefits if you sell the car to a private party rather than trading it in with a dealer.

* You will have to also assess the condition of the car. If the condition of the car is less than impressive it may be a little difficult for you to sell it. You will have to do what you can to make sure that it would be attractive to private buyers when you do put it up in the market.

* The next thing that you will have to do is to decide if you want to go for a less expensive loan or want to sell off the car. If you do sell off the car at its current value and nothing more, there will still be a balance that you would have to repay to the car loan company. The only other way out of the loan is to find a private purchaser who may be interested in paying you a high amount, provided that your car is in good condition. If you find a buyer that pays the full amount that you currently owe to the lender then it would be an ideal situation.

* If none of these options seem to be suitable for you then you may have to simply start saving money so that you can repay the loan faster than the end of the term.