@Anonymous wrote:
My suggestion : Refinance if possible, usually sale price is used which is higher than trade in terms of value, and you could end up paying WAY less in interest. If anything keep the payment the same but shorten the term so you can pay it down quicker. The only other true way to possibly get out of this would be to find a new car with a $8K+ discount on MSRP and I'd only take that route if interest was in a low range.
Well I took your suggestion and Refinanced my Dodge today.
Dropped from 15% for 72 months (with 65 months remaining)
to 5.25% for 60 months.
I'm shaving almost $150 off my monthly Payment.
I think at this point ( at least for the next 8 months) I'm going to attempt to pay down my car as quickly as I can and try and get on top of it's value. Since tax time is coming around that's $3-4K I could dump into the principle of the car. Is that a good idea? Or should I keep looking to trade out?
5 months + $150/m is a significant savings, especially over the life of the loan. I would say good job! I would try and chip in the extra $150 a month toward the principal to bring the balance down sooner and I'd probably trade when you're not nearly as upside down as you are (generally when you can either afford to pay out of pocket for the rest of the negative equity or better yet at some sort or break even point).
FICO 12/2015 - EX 692 TU 685
FICO 10/2021 - EX 596 TU 605 EQ 600 - officially rebuilding.
What survived:
Amex HH - 1.5K | Amex Delta - 1K | Amex Bonvoy - 1.5K | Amex BRG - 3.5K | Amex BRG - 3.5K | Amex Business Cash- 2K | Amex Business Plus - 2K
