Tips on Buying Cars: so upside down!, jaguar s type, decent shape

Question
hello. i am currently making $600 payments for my 2003 jaguar s-type. it has over 100,000miles on it. i owe over $26000 to the bank for the car loan. the car is worth around $7000. i dont have good credit. i would like to get a loan for less car in order to have a lesser car payment monthly. i want out of my current car loan soooooo bad! is there anything i can do?

Answer
You can sell or trade in the Jag... buy a cheap reliable car to last you until you are out of debt.. and then from their you can start over.. The challenge will be getting a credit company to consolidate your old loan with a new loan (for say 5000 dollars for the used car) - and create one new loan with lower payments.. sell the jag, pay what you can off of your current balance (or save the cash) - trade ins may give you less money but a car lot may be the only people who can actually get you the credit workings you will need. You should go to some local banks/credit unions... talk to the loan advisors and see if they can help you - and as a last resort go to respectable used car lots (or new car lots with a pre-owned section).... IF you can get it into one new loan with lower payments - I wouldn't spend more than 4,000-7,000 on the next vehicle... a nice civic/accord/corolla/camry - in decent shape - should last until you can get yourself out of all that debt... be sure to pay off that new loan ASAP - make double the minimum payment or whatever you can - otherwise with bad credit - the interest will kill you.  The big if is finding someone who can work with your current company to give you what you need - that may take time with bad credit - and it may not even be possible depending on your income/creditor... but it is worth a shot.. I hope this helps - good luck.

PS. Beware the "we pay off your old car loan" schemes some dealers have - you still pay for it.. just in a different way somewhere along the lines.. it is merely a gimmick.