[Misty]

So trying to make a decision here. I have a 2020 KIA Soul with 6,800 miles on it. I have discovered I can sell it for around $21,000. I am upside down on it of course owing around $23,000 and have 5 more years left to pay on it! What is the smartest thing to do here?

I also have the gap coverage on the KIA that I would get back the remaining portion after selling it.

I am have $1000 emergency fund saved

[Jon]

FYI I was told Allstate is not insuring new policies on any 2011-2020 Kia or Hyundai. Other insurance companies may be following suit. Might have a hard time selling as a result.

[Josh]

It’s a Kia. Sell it before it starts to break.

[Colleen]

Take it from someone who was upside down in a vehicle: sell it while you can. If it were me, I would get the personal loan to pay off the difference. I only suggest this because while you’re saving up the money, you’re probably going to still be driving the car. Each mile is money lost, especially with a KIA.

[Josh]

Kias drop in value FAST. I think you either sell it now or you keep it and pay it off as fast as you can.

[Bruce]

What I think Dave would say is take a month or two to save up the $2000 difference, quick as you can, and then get rid of the car and the debt.

[Chris]

Yikes, that’s a lot to be upside down on in 3 years. As DR would say, consider this “stupid tax” and move on. Sell it before something breaks on it; almost nothing worse than being in debt on something that needs repairing in order to operate. If the interest rate isn’t feasible, roll it into a fixed-term payment solution and get gazelle after it with additional principle payments. Best of luck.

[Lisa]

The gap insurance will probably not cover your loss as it’s usually for covering a loss after an accident. Your best bet is to work your budget so you pay off your car earlier then planned. Put it in the snowball… car prices and interest rates are crap right now and with that year I believe you may not be able to sell it as many insurance companies aren’t insuring that year vehicle due to the ease that they can be stolen … you are better off keeping it and paying it off as fast as possible… also you have a good warranty on that car so most repairs should be covered for like the next 10 years

[Chris]

See if you can get a personal loan from your local bank or credit union for around $6k. Then sell the car for $21k, pay the difference, then go get yourself a $4k car. Much easier to pay off a $6k loan than a $23k loan.

[Author]

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