Upside Down

Dave tells Sherry how to get rid of a car when the amount owed is much greater than the value.

QUESTION: Sherry owes $13,000 on a $7,000 car. How can she get rid of it? Dave breaks it down for her.

ANSWER: You have to borrow the difference from someone or have the difference in cash. It might be that the lender who has the car loan will let you sign a note for the difference, but if not, you have to borrow it from somewhere or have it in cash.