Upside Down Car Loan


My wife co-signed a car loan for our former daughter-in-law, and now the ex-DIL has left the car at our house and says she doesn’t want it anymore.

The kicker is that previous loans had been rolled over into this one and now the payoff is around $20K while the car is worth around $7K.

Monthly payments are almost $500, for 3-1/2 more years. If we sell the car, the loan comes due and we don’t have $20K sitting around to pay it off.

How big a hit on my wife’s credit if we let it get repossessed?

Anybody have an idea for the lowest cost way to get out of this one?