What to do If You're Upside Down on Your Car Loan

Being upside down on your car loan means that you owe more on your loan than what the car is worth. Let's talk about how this happens, what you can do now, and what Dave Ramsey says about this issue!

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[AlexQuinnYT]

Great tips - this unfortunately happens to too many people. Cars are one of the biggest money-pits people fall into. You just need something that safely gets you from Point A to Point B!

[QuestionEverythingButWHY]

“Every time you borrow money, you're robbing your future self.”
--Nathan W. Morris

[FrugalRules]

I agree with Alex Rae - I think this happens more often than people realize. I'm glad you shared things that can help.

[chrisgreen-nuhs]

Im 21 and have a lil debt and You have given me sooo much motivation and brightened my journey. Thank You!

[kenyam]

Best sound advice and tips ive heard sooo far!!

[Kyle-uspk]

Funny story, I was $30k upside down in a tesla recently because of the chip shortage when I bought it, followed by the tanking of all teslas new prices. My battery and drive unit went out, so I basically owed $85k with interest and repairs on a car that is worth $20-$25k max. What I did was call the bank, tell them to come pick this up, and I took out a lease on a brand new model Y.

Yeah, this was a bit irrational, but I make good money and I’m single. My goal now is to keep the bank from considering it a repossession. I plan to get a personal loan for the $25-$30k and prevent the bank from submitting the repo to the bureaus. The lawyers are saying it’s at the bank’s discretion.

Basically it was either stay in this 10 year old model S for 5.5 more years, or lease a brand new one for 3 and take out a loan for the upside down for 3 years. This means in 3 years I’ll be debt free and I can finance the tesla I want, the Model S Plaid 😉

[bubblegumm]

I recently bought a used car after selling a new car i was almost done paying off....100k miles... 23% interest.. worth 9k but ended up being a 19k loan.. stuck like chuck for being ignorant

[Parlaysfordays]

Wow just found your videos, thank you for the content. I’m in a big financial mess so looking forward to watching your catalog. Thanks

[TomCoNTinYou]

My daughter is $15k upside-down on a 9 year old car she bought 2 months ago from carvana at 18%. We called Carvana and the Finance company and they said basically they couldn't do anything.

[applejack]

Thanks for the info. I can tell you who are really in a bad spot. Uber drivers. I drove Uber for a while and quickly realized how quickly you can get upside down in a new car. Unless you are driving Uber with a older paid off car, you gonna get in a bad spot quickly. And Uber dosent care.

[fernandaherfinancialedit]

Wow, I had never actually heard of this concept of an upside down car loan but it makes sense! Thanks for sharing these tips. :)

[sandyseibelhager]

According to Dave-if you financed it then you bought too much car.

[tareancarter]

Thanks for this video I’m currently thinking about getting out of my 35, 000k car I’m only 19 to much car for me lol

[denaewagner]

Thank you for the info. Alot of negative comments. Made shitty feel more shitty.

[boriazone]

My problem here is that I need a car to go to work which is like 30-35 minutes away from home. And If I sell the car I will be without a car and still paying the loan. I don't know what to do!

[davidking]

Buy a mini they said. It’ll be fun they said….. thnx for the tips … great vid!

[MrJardier]

First time I heard about warranty that's killing me thanks for the video, btw I should call my bank or the dealer to cancel that warranty?

[esmokah]

That lady who financed $5k over for xmas presents saved money with lower interest on a car loan rather than using credit cards. Still, it sounds like she is in a bad way. Most people will set money aside from their paychecks throughout the year to go for xmas. Hope she got GAP coverage..

[kenyam]

Sooo can i request warrenty buy back and tell them im trying to sell my car? Or dont mention the why?

[fajeeloves]

I’m not sure if you’re still active on this video but what happens if I want to trade down like I have a 2020 car right now but I want to trade down to like a 2016 model