Guest post by Joe Plemon, Plemon Financial Coaching
Many of us have made purchases we later regret. The character “Geraldine,” made famous by Flip Wilson, captured this feeling perfectly with humor. Her excuse—“The devil made me do it”—still resonates today because impulse buying hasn’t changed.
Buying a car often triggers the same reaction. After the excitement fades, regret sets in. Car fever can push smart people into bad financial decisions. If you are questioning a car purchase, this guide will help you decide what to do next.
Step One: Ask the Right Questions
How Much Do You Still Owe?
If you paid cash, selling the car is not urgent. You can wait and replace it when ready. However, if you owe money, move to the next question.
How Much Pressure Does the Car Put on Your Budget?
A car payment should not control your life. If one small setback could cause missed payments, the car is too expensive. Long-term debt on a car only keeps you stuck. Ideally, pay off a vehicle within 24 months and then save cash for the next one.
If that goal feels unrealistic, selling the car may be the smarter option.
Thinking About Selling? Know the Numbers
Before making a decision, gather accurate information. Visit KBB.com and check your car’s private party value. This amount shows what you could earn by selling it yourself.
If the value is lower than what you owe, you are upside down.
Example:
Loan balance: $22,000
Car value: $18,000
Negative equity: $4,000
Selling the car and buying a $3,000 replacement would leave you with $7,000 in total debt instead of $22,000. That change alone reduces financial stress.
Selling a Car While Upside Down
You may need to borrow the negative balance to release the title. Start with your current lender and explain your plan. Although lenders hesitate, remind them the unsecured portion already exists.
If that fails, try a credit union or local bank. You can also raise cash by selling unused items or taking temporary extra work.
Persistence matters here.
Reality Check: Are You Ready?
Selling an expensive car brings both benefits and challenges. Knowing both sides helps you decide wisely.
The Benefits
Less debt: A major reduction in total loans
Faster payoff: Smaller loans disappear quicker
Future freedom: You can save for your next car
Peace of mind: Regaining control feels powerful
The Trade-Offs
Inconvenience: Selling and buying takes effort
Lower comfort: A cheaper car won’t feel the same
Maintenance: Older cars need more care
Outside opinions: Not everyone will understand
One Final Thought
Sometimes selling isn’t possible due to credit limits or large loan balances. In that case, focus on aggressive debt reduction. Pay down other expenses to free up cash flow. Once the car is paid off, stay debt-free moving forward.
