. There are prepayment penalties with this loan.
1-Does your car currently run? Does it run well? Is it reliable? Invariably the car you have now is the cheapest one you have.
If you expect to get another 24 months out of your car without having to do any major work to it, I would keep your car and consider paying it off. Then keep it past pay off and putting aside a Carpayment each month till you accumulate a nice down payment.
2-Are the penalties greater then the interest left to accrue?
if the penalties are less then the interest you will pay that makes sense
it also then makes just as much sense to pay it off early as well
3-Your jump to 725- have you had a history of on time payments with your car?
12 months- you have about $500-$600 in interest to pay off.
if you refied it you would still have some interest to pay plus the penalties so I have no idea if you would break even.
personally: If the car runs is serviceable and reliable, it is not worth much in a trade in due to negative equity.
i would do whatever, take a small loan or whatever from your bank or CU and pay it off asap, (unless the penalties are more then $500)
if the penalties are High..I would keep making payments on your schedule
if the car dioes not run well and is not really serviceable, or you do not think it is truly safe and reliable (and I am not talking it needs new wiper blades, get a new car) then I would trade it in, take the negative equity- look for the best rebate.interest rate bang for the buck.