The Expert Podcast

Did you know that up to 20% of the balance of your existing remaining car loan may be able to be removed from that balance? When you purchase your vehicle, you may have been inadvertently added on to your loan with extra interest charges, what they call add-ons, which is things like gap insurance, forceplaced insurance, VSI insurance, maybe add-ons like service maintenance contracts, extended warranties, theft notifications. There's all kind of add-ons that they put on car loans in the FNI office, the financial and insurance office at a dealership.

When you sign all those documents, sometimes that's already baked into the payment that you're quoted in the showroom. They don't have to raise your payment. They can just say, "Yep, here's your payment." And when you sign it, it's already in there. They've already figured that in. And what happens is after you pay the car for a year or two, you've paid down some principal.

You paid down mostly interest. And then you call for your payoff and you owe $32,000, but your car is only worth $24,000. So, you have $8,000 negative equity. So, you can't trade it in. You can't sell it because you owe more than it's worth. What if you could cut off four or $5,000 worth of that balance, maybe more, and get closer to a break even?

So now you can trade it in, maybe you can sell it, maybe you can work with your lienholder. Some lienholders have a short sale process. You can click the link below. Either way, you want to look at all of your options because in many cases, up to 20% of your loan balance can be removed from the principal amount. And 20% could be a lot. That could get you closer to an equity scenario where you don't have upside down, underwater balances owed on your vehicle and get you closer to getting out of that high car payment and get into something that's more affordable or a vehicle that's better suited for what your current life is.

If you like this video, be sure to click on a few others on our channel to see if there's other information that might be helpful to you about this same subject or maybe even other related subjects that could assist you with your resolution of your issue.