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Well, there are two components to your loan - the principal, which can only be reduced as you pay the loan, and the interest, which could be reduced by refinancing to a lower rate. But good luck finding a bank or credit union willing to take on that loan without a cash payment of at least 14K (the difference between what you owe and the value of the car).

So the answer is no. And don't pay someone a fee who claims he can do it.

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Nice parents.

What you are in effect, stuck with, is paying off all four of your parent's previous cars. The only way you can reduce you cost is to lower the intrest rate on the loan. Let's say your parents had bad credit and kept borrowing at 20%. If you assume their loan you now have to pay that rate.

However, if your credit is better than theirs you may be able to refinance to 10% and save a substantial amount over the course of the loan.

I would go to a bank or credit union to explore this option. The last thing I would do is buy another car and roll that debt over yet again.

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Well here is some more info... The loan amount was originally bought at $32000 with a 5.6% interest rate. As of now, the amount owed on the loan is $27,827.27. I had the car estimated to be about $13 -15,000. So the car dealer says he might be able to lower the negative equity by getting me into another car. I have not had the chance to speak directly with him about the situation fully yet since our conversation took place during a fundraiser. He does know the general upside down mess I am in. My credit score is building up, im at about 670. My mother has great credit at 780ish. I have tried refinancing but unfortunately the credit union I am with is not offering low rates that I qualify for. And no other credit union will take me since the negative equity is very great.

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Of course the car salesman wants to sell you another car - he earns a commission, but you would get deeper in debt.

You got stuck with this deal (is it in your name?) but at least the rate is low. Was this "gift" supposed to be a favor to you? Why did you even accept it?

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What bank was willing to lend such a ridiculous amount of money on one of the fastest depreciating automobiles in history?

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Maybe Obama can help!

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The last thing you need is to roll the negative equity into ANOTHER car. 5.6% is a decent interest rate, and it is highly unlikely that you will find a bank or credit union willing to refinance it given the amount of negative equity involved.

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5.6%? Well scratch that idea. My god, why would a parent do that to their kid? Can you re-gift it back to mom and dad? I'd give them the finger too.

If you have taken title to the car and assumed the loan I don't see a way out for you. Pay double payments each month and get out from under as soon as you can.

Skip Thanksgiving dinner with the folks this year, they'd probably pick your pocket while you're eating.

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K so I spoke with the car dealer today and gave him all the numbers he needs. The "plan" is to try to get a trade in value of $16-17K, get a used car that he can take off about $4-5K and place my negative equity in so the total comes out to be around $22-24K.

Unfortunately, I only make enough to pay my current bills, so doubling my payment each month is not an option since it would be close to $1000/month if i did that route. I am looking for a second job to help pay some bills. I live out on my own, work full time and go to school part time. The car is registered under both my mother and I.

I hope that gives a clearer picture. I am trying to be smart about this, so I appreciate all your comments and feedback. If a deal comes through, I will double check all the figures before signing anything. And if I could, I would gladly give the car back to my parents :)

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I sincerely doubt that you will come out "ahead" by trading vehicles again.

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I think we all wish you luck. You seem to be the only responsible one involved in this mess and you're trying to claw your way out of it.

IMO, though, you don't seem to gain much by this scheme. By trading in a car & getting wholesale for it, you'll get, at retail, an older and likely, less reliable car in the exchange. The money you save by reducing your principal may just go to more car repairs, so the total cost may not be much different.

I hope that you got something in exchange for the debt you've taken on, or that your parents appreciate the favor you have done by taking on the consumer debt they foolishly incurred.

Good luck.

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Well - My Brother is a GM at a dealership and he tells me... I have a 2006 Dodge Magnum RT AWD Hemi version with around 37k miles. The car is in showroom condition as day one. He pulled some reports and being 14k out of equity myself, that there is no chance in helll during these times a bank is going to extend too much above MSRP for whatever kind of car , new or used., Why would a dealer take off 5-7k of profit to take on a car that is so flipped.? Think about that..... I think the dealer is trying to pull something ..... AND if any dealer thinks they can help me..... By all means,,,,, go for it.

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Is that 27k counting the interest thru the loan term?If u can make the payments keep the car.Learn from parents mistakes.The negative equity is not in your car its in the 4 previous cars and unfortunately someone is responsible for that debt.and the best way out is to pay it.If u let it go back as in repo it will go against your credit and u would be responsible for diff of what they sell car for and amount owed plus any expenses,ie repo fees lawyer fees recondition fees etc.Anyway don't see how car dealer can lower negative equity you may end up owing less money than now but you will be upside down in what ever he is selling you and still owe diff between what Jeep is Worth and 27k.I'd be asking parents to help you out as in take car back along with debt. or pay negative part.Another question what are you basing jeep worth on trade in value or retail?

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May be worth a try to sell it yourself.See if someone is willing to take over payments.

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