Auto loan rates for those around 550 credit

[Intergalactic57]

My current FICO score is 547 from TU.

I have an auto loan, it's current payoff balance is $16,746.82, with an IR of 14.99%  The estimated trade in value is around 10k, leaving me with around 6750 in negative equity.  

Current income is $116,000.00.

I'm curious what new IR folks have had, with similar credit scores / income.  If I were to get a new car loan, with an interest rate say in the 8% range, would it be worthwhile to transfer that negative equity into a new car loan?

[StartingOver10]

Why don't you pay the neg equity off and sell the car if you want to get something else? 

Don't transfer the neg equity to the new vehicle, especially if you are at such a high interest rate. 

If I were in your shoes I would visit the rebuilding section here on MyFICO first and get your score up into the mid-600's or at least over 600.  Depending upon your CR it may not even take that long to do. Some people made great increases in a month or two (50+ points).

Also I would go to a credit union to get financed before negotiating with the dealership so you get a better rate and term.

I would sell the vehicle to Carmax and pay the difference so the neg equity doesn't carry over and you end up starting fresh on the new one. It will show a paid off TL and help you in the long run. 

[Anonymous]

Great advice! Make some principal payments, make progress against the negative equity and consider refi with local credit union.