Refinance or Change Car.. Help Needed.. :)

[remarc]

Hey Everyone.. Im looking for some advice on my current situation

Back In August of 2010 I got my first car, It was a Volkswagen Jetta. Beautiful car. Perfect condition. At the time I had no credit history because I was new to the country, (Originally English)I got the car on a 60 month loan with a whopping 19% APR. I managed to get the car because I traded in my old car and put down $3000, all in all the car was worth $17999 and I finance $13000.  I currently owe $11500 on the auto loan and my car is in great condition and if sold private I could easily get $14500 and with trade I could break even if I found a honest auto rep!! LOL 

Its nearly two years on, my credit score is up from 580 when I got the car to 711 which it stands at now. I have 3 sub prime Credit Cards, Discover, Chase & Citi all with $1500 CL expect the Discover which is $1000. I have Capitol one which is $1200, I don't not hold a balance on any of these cards and they are always paid in full every month. I hold one balance and that's on my Bestbuy Store card with 0% APR, currently its at $800 and my CL is $1350

My question is this.. Should I look to refinance now? I would love to get a lower APR, other than 19%! Or should I wait till after the two year mark in August? 

Refinance or buy a new car, used or lease ? A lease would be a lower monthly payment and it would be a new car. But i hear you need perfect credit for this??.

If I go and trade my car in and they give me what I need to pay off my current loan I'm then left with no or very little down payment to buy the next car but with the difference in APR my monthly payments would be greatly reduced..

Im really not sure which direction I should go ? I need to reduce my monthly payments of $365 that's a certain but should I refinance and would I get a good rate with the score i have? should i refinance or should I get a different car??

Please Help

[StartingOver10]

My .02 cents - refinance your loan instead of trading.

You have plenty of history now and a good credit score to reduce your interest rate. Go to a credit union or your bank to get your best deal. Trading your car in for another just adds to the balance due and gets you a different vehicle but it doesn't help much with the underlying loan. In fact, from what I've seen, that's the primary way people get into trouble - trading too often with a vehicle that has a balance on their loan. The balance is carried from car to car and keeps growing. You can avoid the whole growing balance mess by just refinancing.

[swsop12]

I think you are probably in pretty good shape to do either. Are you happy with the car? Do you just want something different? Considering your score, history, and the fact that you now have an auto TL, I bet you could get an interest rate of 4-6% on either a refi or a new purchase.

[pizzadude]

I agree that unless there is some underlying reason to get another car, you should try to refinance your existing loan.   I think you would qualify for a much, much better rate than you currently have.     Even if your payments drop, keep paying the same amount each month and you can reduce the principal on the loan whilst saving interest as well....

[FrugalRican]

You said the card was beautiful and in perfect condition.

Just refinance.

[Creditaddict]

Refinance but don't go more than 36 months!

What year is the card and how many miles currently? (This might change my thoughts of refi, VW can get a little expensive as they age for up keep.

[remarc]

I was thinking of getting a suv because I have a little boy coming soon so I was decideding which option I should choose.

My Jetta is in great condition. No major marks, 1 previous owner. Very well looked after by me! Lol. It has 55000 miles & it's a 2007 with the upgraded package , leather sears, electrick seats windows etc, sat radio but without sunroof & navigation.

[Anonymous]

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@Creditaddict wrote:

Refinance but don't go more than 36 months!

What year is the card and how many miles currently? (This might change my thoughts of refi, VW can get a little expensive as they age for up keep.

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+1

[remarc]

I want to add that if I did get another car it would be for about the same prince that my current car is worth ie. below $15000
I don't think spending more would be financially viable ?