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BK-CPA, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 933
Experience:  Owner of a CPA firm
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I am a full time student. I am expected to graduate in

Customer Question

I am a full time student.
I am expected to graduate in December 2016
However, I am semi retired, I will be 65 in September
I work only 16 hours a week at McDonalds
I have a car, I cannot afford anymore, because my car-note is $410. and my car insurance is $330. I live in Michigan. My credit is bad, I've had the car for 18 months. I cannot pay or make it. It has been repossessed once, because I cannot afford both the car and insurance. What can I do to rid of this situation?
Submitted: 1 year ago.
Category: Finance
Customer: replied 1 year ago.
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Expert:  BK-CPA replied 1 year ago.

Hello and thank you for your question.

You've basically got two options: sell the car or quit making the payments and return it to the dealership. If you sell the car, you'll need to get enough to pay off the loan taking into account any of your personal funds you could include.

There is the notion of trading in the vehicle as part of a plan to purchase a new one where you might get your old loan rolled into a new loan on a new vehicle. That falls under the first option of selling the car, but I don't know if it's feasible. The new car should obviously be a much cheaper one and the new loan may consist primarily of the outstanding balance of the old loan not paid off via the trade in.

There is no magic answer to this question.

Best of luck!