Rogers Media uses cookies for personalization, to customize its online advertisements, and for other purposes. Learn more or change your cookie preferences. Rogers Media supports the Digital Advertising Alliance principles. By continuing to use our service, you agree to our use of cookies.
We use cookies (why?) You can change cookie preferences. Continued site use signifies consent.
Q: “I bought a Nissan Versa for $17,500. Because I have a poor credit rating, the dealer charged me 29% interest on my car loan. When the loan is finally paid off, the car will have cost me $34,000. I want to sell, but I think the car maybe worth less than the loan. What can I do?”—M. Fisher, Ottawa
A: You can pay off a consumer loan early with little penalty. So arrange a better financing deal with another lender—and get someone to co-sign if you have to. Then use the second loan to pay off the first. Or, sell the Versa and buy a cheaper car. But if what you owe on the Versa is more than its trade-in value, you’ll have to pay the difference by adding that amount to the new car loan. Also cancel any existing loan insurance and replacement value coverage directly with the providers and get a refund.
George Iny is the president of the Automobile Protection Association. Send him your automotive questions at ask@moneysense.ca.
