The Expert Podcast

Because of the tariffs, there's been a big spike in auto buying. People are trying to buy new cars before the prices go up. That's also affecting the prices of used cars. What is that uh resulting in? Well, it's resulting in people paying high payments. We're seeing videos interviewing people that have purchased cars with payments well over $1,000. 7 8 900,000, 1100. It used to be that car payments were three or 4 hundred bucks. Maybe 500 if you bought a nice car, but now 500 is almost considered to be a cheap payment. How much is your payment? Is it 600, 700, 800?

The bigger problem is negative equity. If you have a high payment on your car, that's one thing. But if you're trapped in your car because they call it being upside down in the car, underwater in the car, out of equity in the car, all of these things are terms to say you owe more on the car than it's worth. And if that's the case, you can't sell it. If you have a car that you owe 35,000 on and it's only worth 25, you can't sell it for 25 because you have a $10,000 negative equity.

Sometimes you can try to trade it in and they'll tack on that equity onto your next car, but that's just going to kick the can down the road and you'll have worse negative equity in two, three years on that car because you'll have the negative equity for your tradein plus the negative equity for your existing car. You might be 20,000 out of equity. So, how do you deal with this? Well, there's ways you can reduce your principal on your loan.

You can check out the website below, uh, carshortsale.com, which will your video will be back in 8 seconds. In the meantime, remember you have access to live one- on-one consultation, undivided attention of a licensed certified expert in this subject and many others. We want to listen to your story. We want to hear your questions and give you expert advisement of your options. We want to tell you what we know about your situation and what options you have. Now, back to your video.

Give you instructions on how to reduce your principle using some techniques. It'll also give you some options for uh going through the process of doing a short sale, selling your car for an amount that's less than your loan balance and being able to account for that difference. Sometimes the lender will contribute. They have programs for this uh or you can offset part of that. It's going to be a chronic problem for a lot of vehicle owners, especially if you need to get out of your car. Maybe your payment's too high. You can't afford it.

So, you need to get rid of it. One thing you can do is turn in the keys and do a voluntary repossession. that kills your credit and it doesn't get rid of that balance because if you have a car that's worth 25 and you owe 35, if you just turn in the keys, they're not going to sell it for $25,000 at the auction. They're going to sell it at a wholesale auction for probably $20,000 because that's a wholesale uh liquidation of a repossession and then they're going to come back and sue you and garnish you for the 15,000 that they lost on it.
So you don't get rid of the the negative equity just by doing a voluntary repossession. You get rid of your payments, but you still owe the money. So you're better off going through a more organized formal process. So maybe you could sell it for 30 because you can get retail for it. You get your 35 chopped down to maybe 32 or 31 or something like that. So maybe you only have about a $2,000 negative equity and maybe you find ways to cover that through the lender or through a car short sale.

But this problem is not going away. It's a big problem for lenders, big problem for vehicle owners, and it's going to be very difficult to work through all this debt on automobiles. Thank you for watching. Remember, you can access live one-on-one personal consultations with a licensed private investigator, a licensed commercial uh insurance broker, licensed certified real estate title examiner, also a certified civil court mediator. So, if you have a need to talk to an expert in any of these fields or even a licensed building general contractor, you can click the link below, actualhum.com, and arrange a live one-on-one undivided attention with a licensed expert where you can ask any questions, get information about your situation, and we'd be glad to help.