Getting rid of my car because it is a liability

[Kade McCammon]

Hello Bigger Pockets community! So I'm still brand new to REI and just finished reading Set for Life and am now finishing rich dad poor dad and also just started finding and finding great deals. So I've made the decision to be financially free however there are some decisions I made previously that hinder my goals. The one I'm focusing on now is my current vehicle. I have a loan on it with a $23000 and it is probably only worth 20 on the private market and about 16-18 thousand to a dealer. So my question is it worth it to sell it to a dealer and just get a signature loan for 5 thousand max to get rid of the debt and save myself well over 15 thousand in the long run or just keep the car and continue to pay close to $400 a month and hurt my savings. I need to make a decision soon because I am leaving where I live now due to the military and may not be able to take the vehicle with me. I would plan on buying a commuter vehicle for 5 thousand or so once I move not another big loan. Also I don't have the money saved right now to pay off that difference or I would. But I will have the money saved up by the end of next year to completely pay off that 5 or so thousand if I keep saving the way I have recently started. Also how much will a signature loan effect my credit. Thank you guys. V/R Kade McCammon

[Steve Vaughan]

Definitely sell the car, but not to a dealer.  The 'easy' way usually costs.  Use the extra few grand you get from a private sale to help fund your next functional driver if you need one. 

If it was financed through a bank, they may be able to extend you a signature loan.  That's basically what they have anyway since the collateral is under water.

Glad you realize the car was a mistake!  We've all made them.  You are on the right path @Kade McCammon!