What should I do???

[Anonymous]

I bought a new car in 2008 (Honda CRV) and I am still making payments on it until 10/2014. Now I think I want a smaller cheaper car...my notes are $480 per month and when I purchased the car in 2008, I only made $30,000 however now I make almost 15k more. Do you think that would work in my favor for a cheaper interest rate and monthly payments? My credit score from Equifax is 651 so it's not great due to late credit card payments and student loans. I am just unsure if I should stick it out and continue to pay the $480 until 10/14 or if I should try to sell the CRV and get something cheaper with smaller monthly payments. Help! I'm confused.

[pizzadude]

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@Anonymous wrote:

I bought a new car in 2008 (Honda CRV) and I am still making payments on it until 10/2014. Now I think I want a smaller cheaper car...my notes are $480 per month and when I purchased the car in 2008, I only made $30,000 however now I make almost 15k more. Do you think that would work in my favor for a cheaper interest rate and monthly payments? My credit score from Equifax is 651 so it's not great due to late credit card payments and student loans. I am just unsure if I should stick it out and continue to pay the $480 until 10/14 or if I should try to sell the CRV and get something cheaper with smaller monthly payments. Help! I'm confused.

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Can you provide some additional information ?   What is the remaining balance on your auto loan, and what is the interest rate ?     Also do you know what an approximate trade in value would be for your car ?    Do you have good payment history on any auto loan(s) on your credit reports ?

[Anonymous]

Hello,

The remaining balance on the CRV is around 12K  with an interest rate of 10% and I have 50K miles on it. I have a good payment history with honda finance...I think I was 30 days late back in 06/09 due to some fraud on my checking account. I am not sure of the trade-in value of the car but based off my research, they seem to be selling for around 15K and every time I go into the dealership, they claim there is an high demand for used CRVs.

[pizzadude]

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@Anonymous wrote:

Hello,

The remaining balance on the CRV is around 12K  with an interest rate of 10% and I have 50K miles on it. I have a good payment history with honda finance...I think I was 30 days late back in 06/09 due to some fraud on my checking account. I am not sure of the trade-in value of the car but based off my research, they seem to be selling for around 15K and every time I go into the dealership, they claim there is an high demand for used CRVs.

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It sounds like you would probably be ok to qualify for a new loan with good terms IMO.     Looking at KBB values, it shows trade in value around 15~17K for a 2008 CRV ( retail ~20K ).  

@Anonymous you have any additional funds that you would be applying towards a downpayment ?   Also do you know about how much you want to spend on another car ?       Just as a reference, if you take a loan of $20,000 @ 3% for 48 month, payments would be $443.