Newspaper logo  
   Car Values Drop As Loan Amounts Stay High


Car Values Drop As Loan Amounts Stay High

courtesy of Myvesta, a Rockville, Md.-based credit counseling service

With the average new car sticker price at almost $30,000, consumers are taking out larger loans to cover their appetites for larger cars. As a result some people are finding it harder to make their payments each month and they are finding themselves without options to unload the car without taking a loss.

"As soon as you drive your new car off the lot it's worth a lot less than the loan you just signed," said Steve Rhode, president and co-founder of Myvesta, a nonprofit financial management organization. "As a result, many people who are having trouble making their payments are upside down on their loans and canít sell the car or trade it in without still owing thousands of dollars."

When a consumer is "upside down" on an auto loan it means that the amount they owe on the loan is more than the actual value of the vehicle.

"Over the past few years dealers have been luring in buyers with incentives such as zero percent financing and longer loan terms," Rhode said. "As a result of these tactics, dealers haven't been coming down on the total price of their cars as much, and consumers are owing more on their vehicles for longer periods of times. We've recently seen advertisements for 94-month auto financing.

Rhode recommends these tips if you are upside down on an auto loan and having trouble making the payments:

  • Find someone to make your payments. Instead of selling the car or trading it in, see if your lender will allow someone else to take over your loan.
  • Consider refinancing if you are having trouble making payments. A lower rate or longer term may make your monthly payments more affordable.
  • Negotiate with your lender to forgive all or part of the difference of your loan if you can make a lump sum payment after the sale of your vehicle.
If you are having trouble keeping up with your car payments, read the publication "When You Can't Make Your Vehicle Payments." It can be downloaded free from, or for a printed copy send $5 to Car Payments Publication,, P.O. Box 8587, Gaithersburg, MD, 20898-8587.

You may also sign-up for Myvesta's email "DebtBytes" newsletter by clicking here. It's FREE.

Copyright © 2003 The Baltimore Chronicle and The Sentinel. All rights reserved. We invite your comments, criticisms and suggestions.

Republication or redistribution of Baltimore Chronicle and Sentinel content is expressly prohibited without their prior written consent.

This story was published on September 18, 2003.
Local Stories, Events

Ref. : Civic Events

Ref. : Arts & Education Events

Ref. : Public Service Notices

Books, Films, Arts & Education

Ref. : Letters to the editor

Health Care & Environment

03.17 China's 'war against pollution' shows promising results, study finds [U.S. doesn't care]

03.17 China's 'war against pollution' shows promising results, study finds

03.17 In Latest 'Alarming' Attack on Science, Pruitt Reportedly Moving to Restrict Use of Research in EPA Policy [“Stupid is as stupid does.” –Forrest Gump]

03.17 Global energy giants forced to adapt to rise of renewables [the Middle-East's wars may be stupid given looming drop in oil and gas prices]

03.16 The Guardian view on air pollution: moral pusillanimity, political ineptitude

03.16 Pollutionwatch: Cold snap worsens particle load of air

03.16 Energy sector must use new tech to ensure the vulnerable aren't left behind

03.16 Pollution, illness, threats and murder: is this Amazon factory the link?

03.16 It's 50 years since climate change was first seen. Now time is running out

03.15 WHO launches health review after microplastics found in 90% of bottled water [health risks are being assessed]

03.14 World’s great forests could lose half of all wildlife as planet warms – report [ho-hum...]

03.14 Sky-high prices of everything make US healthcare the world's most expensive [legal corruption of government Makes America Less Great Again, and more of a mafia-state]

03.13 Microplastic pollution in oceans is far worse than feared, say scientists

03.13 Krill fishing poses serious threat to Antarctic ecosystem, report warns [What's the cheapest and easiest way to kill all life here? I know, let's...]

03.12 Climate change is a disaster foretold, just like the first world war

03.12 Arizona Utility Opts for Solar and Storage to Meet Peak Demand

News Media Matters

03.15 Verizon Will Fix Broadband Networks, Landlines to Resolve Investigation [Will Trump's judges help or hurt The Public in situations like this?]

Daily: FAIR Blog
The Daily Howler

US Politics, Policy & 'Culture'

03.17 Conditioning Through Contempt: They Are Calling Us Their Base to Demean Us

03.17 Andrew McCabe, ex-FBI deputy and Trump target, fired days before retiring

03.16 Package Bombs Are Killing People in Texas but Donald Trump Hasn’t Said a Thing. There’s a Reason for That.

03.16 N.R.A. Proposes Having Second Armed Teacher in Every Classroom to Stop First Armed Teacher from Misfiring

03.16 Cash in: the rich guys in Trump's cabinet who can't resist public money [morals and rules for behavior are for little people]

03.16 Mueller subpoenas Trump Organization for documents related to Russia – report

03.15 Blasting #BankLobbyistAct, Warren Unveils "The Ending Too Big to Jail Act" to Fight Wall Street Greed

03.15 'Enough': US students come together in spectacular walkout to end gun violence [the world rolls their eyes]

Justice Matters

03.14 Manafort could face ‘rest of life in prison,’ judge says

High Crimes?


Economics, Crony Capitalism

03.17 The Radical Reformist

03.11 Capital Inequity: Conditioned to Accept Collective Enslavement and Self-Nullification

International & Futurism

03.17 Sergei Skripal: Russia expels 23 British diplomats as row deepens

03.17 Turkey claims to have encircled Afrin, besieging up to 200,000 [Kurds are the new Armenians. Is ethnic purity—that DNA testing cannot discern—so important that Turkey and Syria must kill minority ethnic populations?]

03.16 The long read: Vladimir Putin’s politics of eternity

03.16 Australian man who raped Indian orphans released immediately after conviction

03.15 Finland is the happiest country in the world, says UN report

03.15 Busting the Myth of ‘Welfare Makes People Lazy’ [Are all conservative economic theories based on anecdotal gossip of ill-informed, often-biased people? There does seem to be a pattern...]

03.15 Donald Trump admits making up 'facts' in trade meeting with Justin Trudeau [“Stupid is as stupid does.” –Forrest Gump]

03.15 Can we fix it? The repair cafes waging war on throwaway culture

03.15 Spy poisoning: allies back UK and blast Russia at UN security council [videos]

03.14 Rodrigo Duterte to pull Philippines out of international criminal court

We are a non-profit Internet-only newspaper publication founded in 1973. Your donation is essential to our survival.

You can also mail a check to:
Baltimore News Network, Inc.
P.O. Box 42581
Baltimore, MD 21284-2581
This site Web

Public Service Ads: