The Rising Cost of Car Loans
So are you struggling to pay your car loan? Is your automobile loan more than what you can afford? Well, you’re not alone. This reading from CBS News had some very troubling data, some very troubling information. If you look at the percentage of car loans that are $1,000, back just five years ago in 2020, only 11% of people had a car loan that was $1,000. Now it’s almost half—42% in 2024. We’re already a few months into 2025, and it’s probably close to half the people who have a car loan that’s $1,000.
The Burden of High Car Loan Payments
$1,000 is sometimes more than two weeks’ take-home pay for a car loan for some people. If you’re having difficulty paying for your car loan, the first thing you’re going to discover is you can’t get out of it because you owe more than it’s worth if you want to trade it or sell it. So you have to do what’s called a car short sale. A car short sale is where the lender is provided a package of documents for you to be able to offload your vehicle.
Expert Consultation is Available
Remember, you have access to live one-on-one consultation and the undivided attention of a licensed certified expert in this subject and many others. We want to listen to your story, hear your questions, and give you expert advisement on your options. We want to tell you what we know about your situation and what options you have.
Challenges in Vehicle Title Transfers
To sell your vehicle or trade it in without having the negative equity block your title, you need to consider a car short sale. If you have negative equity on the vehicle, your lender will block your title transfer because of the amount that you owe in excess of the vehicle’s worth. They interviewed quite a few consumers for this piece who talked about how much they owe and how difficult it was.
A Real-Life Example of Struggling Car Owners
For example, this woman had an EV that she purchased, and her payment was close to $1,000. She was no longer able to use that vehicle because the range didn’t supply enough miles to get her back and forth to where she needed to go. So she wanted to trade out of it to get something more efficient. Well, guess what? She couldn’t because she owed more than it was worth. This is just one example of people struggling to pay back their car loans.
How to Proceed with a Car Short Sale
If this is you, you want to look at a car short sale. You can get information below with full instructions on how to go about doing it. You could do it all yourself. We have a title service if you want assistance with it. A car short sale instructional reading and instructional checklists are all available on the website carshortsale.com.
