What do you do when you are stuck with a new car you owe money on but no longer want?

You can't return it to the dealership so that option is out. You have 2 options that I can think of. 1) sell the car for what you owe on it or 2) allow the bank to take the car from you. The first option won't hurt your credit, the second will because it is called a "voluntary repossession." If you sell the car, but cannot get what you owe on it, then you should get another loan to pay the difference in sell price and what you owe on the loan. Paying that off is much less than a new car you can't afford. You will have to pay off the car entirely to get the title and sign it over to the buyer. This is why you would need to get a personal bank loan right away if you sell the car, but sell for less than the amount of your loan. Just be sure to give the buyer a 'bill of sale' with both of your signatures on it when you sell the car. This way, they can't back out of the sale once you get the title a couple of weeks later.