Tips on Buying Cars: How do I sell a car that the loan is upside down?, leasing agent, negative equity

Question
Jeremy,

I made a huge mistake in thinking with my heart instead of my head and agreed to co-sign a car loan.  My daughter was pregnant and needed another car, the baby's father asked if I'd co-sign the loan.  Even though I say I co-signed the loan, I made sure I was the actual owner of the car and the boyfriend was the co-signer.  I don't have to tell you how this story ends.  Now I'm trying to figure out how to sell a car that is upside down in the loan.  I have someone who wants the car but can't get a loan because of what's owed.  Would leasing the car to them for a year to get the loan paid down be an option?  Thanks so much for your reply.

Answer
Sharon,

Unfortunately you are not alone in this situation. A lot of people co-sign for loans when they should not.  As far as leasing the vehicle out, you legally can not do that.  You are not a licensed leasing agent or company, and you can not sub-lease your vehicle.  That is against the law.  The only way that you can get out of this car is get a personal loan for negative equity and pay it that way.  The person who wants to buy the car, buys the car for what their finance company will finance it for, and you get a loan for the rest to pay the loan in full.  That will be cheaper for you in the long run.

Hope this helps.

Thanks - jb