[hcallihan]

My question involves an auto loan or repossession in the State of: Alabama

Here's my situation. I purchased a vehicle for $32k back in September, used vehicle at that. According to KBB/NADA, the vehicle was right in its price range. Just the other day I checked its value again and it's right around 18-22k. My balance owed is 29k. With depreciation and everything else factored in, I dont really see a point in paying to this truck to go no where in the long run. It basically dropped $10,000 in value in a matter of months. I've considered turning it in but I dont really know the ins and outs of my state about reposessions. Anyone have a better insight? Thanks.

[cyjeff]

Okay... I am guessing this is your first car loan.

All cars depreciate. Some depreciate faster than others.

If you allow your car to be repossessed, you will still owe the difference between what your car sells for at auction and what the remaining balance of your loan is.

You are always upside down on a car loan the first third to half of the loan timeframe.