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Refi auto loan or buy a new car?

Valued Member

Refi auto loan or buy a new car?

Hi, I could use some advice!  I'm 3 years post Ch7 and I currently have 2 years left on my car loan at 14% with a payment that is killing my budget. I'm stuck between trying to refi at a lower rate and adding a year to lower my monthly payment -or- buying a new or newer pre-owned vehicle with a lower interest rate.  I've got 65k on my car and will be near 100k in 2 years when the loan is paid. I wouldn't be upside down on the refi or trade in soon. Current auto scores are just below 700. I have a few  CC balances that I'm working on paying off. Any suggestions would be appreciated! 

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Community Leader
Valued Contributor

Re: Refi auto loan or buy a new car?


Hufflepuff wrote:

Hi, I could use some advice!  I'm 3 years post Ch7 and I currently have 2 years left on my car loan at 14% with a payment that is killing my budget. I'm stuck between trying to refi at a lower rate and adding a year to lower my monthly payment -or- buying a new or newer pre-owned vehicle with a lower interest rate.  I've got 65k on my car and will be near 100k in 2 years when the loan is paid. I wouldn't be upside down on the refi or trade in soon. Current auto scores are just below 700. I have a few  CC balances that I'm working on paying off. Any suggestions would be appreciated! 


Are you looking at going through a CU for the auto loan?  We all know that going through the dealer can lead to too many new INQs.  If it were me, I would opt to purchase a new car as long as it is in your budget, because regardless to whatever option you choose, the old tradeline will be closed out, and a new one opened. 


Gardening till December 2019
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Message 2 of 3
Valued Member

Re: Refi auto loan or buy a new car?

Yes, will try a CRU for the loan. The current loan was IIB and reaffirmed.  Curious what will happen to my scores with a new loan.  Still need to price cars and figure out what I can afford. Thank you for your reply Smiley Happy

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