I have an 08 chevy aveo and have a loan for about 14k but now i want a cheaper

[hopeful]

car with lower payments.? I bought this car last year but now I would really like a much cheaper, older, used car. I dont know how that works though. Since my car would be worth more technically than the car I would like to get, but I would have no cash to put down and I would still have this 14k loan. I dont know what to do. I think im stuck with the car huh?

 

[mccoyblues]

More than likely you are stuck with the Aveo.

You have to determine the fair market value of the Aveo to determine how much money you would lose if you attempted to sell it or trade it in. And you will lose money. You haven't had the car long enough to pay down the loan amount. The car depreciates at a much faster rate than you can pay down the loan balance, especially in the first two years of the loan.

If you owe $14k on this car and you can only sell it for $10K then you lose $4000. Can you afford to spend $4000 to get out of this loan? Probably not. The goal is obviously to reduce the gap between loan payoff and market value. You can' t control the market, you can only control the loan payoff.

So in order to get out from under the Aveo you'll have to figure out how practical it is to pay off the loan, either by selling it or trading it in and then start all over with a new car and a new loan.