A month ago we decided to sell our car. The long standing problem we faced was the upside down value we had in it. We rolled $12K onto this car in order to get out of the previous vehicle. At the time it was thought to be a good idea, but soon after we purchased it, my wife landed a job that allowed her to work from home. A year after that, I too began working from home. Ultimately that "good idea" car was not such a good idea.
Following Dave Ramsey's plan of getting out of a car that had an upside down value, we chose to sell it and take a loan out for the difference in market value and loan balance. We chose Prosper.com as the method of obtaining a loan.
At first I was sceptical of the whole lending process, but reading the FAQ's and reading experiences of others gave me confidence to proceed. If you take on the interest rate they recommend applying for, it was a very quick to get fully funded. If you are unfamiliar of the process, after applying for a loan, investors (peers) contribute to your goal. After it is fully funded, a bidding war takes place, and the end result interest rate is reduced. Ours was reduced 2%. I recommend waiting the entire 7 days to receive funds, even though it may be fully funded prior to this date.
Overall, the experience was pain free and pretty simple. I would recommend using them if necessary...but of course, the preferred method is to have a cash savings instead of taking on debt :).
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