Let’s see if you agree with my advice on this scenario. I received this email from a friend looking for advice for a friend interested in buying a used Volvo C70. First the scenario and then my advice. At the end, I’d like to hear what you think.

The object is a 2002 C70 with 70k which a lady “fell in love with,” bought it with help from a car loan a few years ago. The dealer is no longer in existence, the nice lady has a debit balance of $14k, the nice lady’s boyfriend took the car for a ride and it overheated, so the nice lady put it in her driveway, removed the plates, is continuing to make the monthly payments, and the car’s been off the road for about a year now. The nice lady is upside down on the loan, doesn’t have either the will or the money to go address the overheating problem, so she’s just said “to hell with it” and continues to make the payments while the car rots outside her house.”

Then, my friend (a respected automotive blogger) added this info: Friend wants to buy this car, but not for the 14K that’s currently owed on it. Is there any way for this lady to bow out of her upside down situation, and him to buy the car, without the car being repo’d and sent to auction? Wonder if she could take a personal loan to pay off the car loan. not sure a bank would float credit for something like that.”

Here’s my reply: What she should do, if she really wants to get rid of it, is to take a home equity loan to pay off the difference between what your friend would pay and the loan. Otherwise, she’s looking at an unsecured personal loan, which would be steep interest.

By the way, if this is a coupe, it’s only worth $6500 assuming it’s in decent shape (at the most), according to Edmunds.com. Convertible might be worth $8000 (not factoring in the repair work).

It makes no sense for your friends to get involved with this car. From the sounds of it, this lady probably did no preventive maintenance on it. Tires probably suck after sitting for so long (as well as other mechanical and electrical components). Sounds like this lady got hosed when she bought the car if she still owes $14k on it.

Share your thoughts below. What advice would you give this woman? Keep your answers legal, of course. Don’t suggest leaving the keys in it on a Boston street, for example!