How to Get Out of a Bad Car Deal

Dave outlines the steps to getting out of a bad car deal.

QUESTION: Gary asks Dave to outline the steps to getting out of a bad car deal.

ANSWER: In most cases, in order to get the title to the car back from the bank, you end up making up the remaining balance with a loan or cash because your car is not worth what you owe on it. 

Go to KBB.com and do the private sale calculations.  This will tell you how much you can get for the car.  You also need to call the bank and get the actual pay-off on the car. 

Then get the car in the classified ads, sell it, pay the remaining balance, get the title to the new owner, and you’re out of an upside-down car deal.  Even if you have to get a small loan for the remaining balance, you’re out of debt way faster than if you had kept the car.