cancel
Showing results for 
Search instead for 
Did you mean: 

Refinancing Amount and Value of Vehicle??

Highlighted
Regular Contributor

Refinancing Amount and Value of Vehicle??

I have a 2016 Silverado I paid $30,000 for about 2 years ago. At the time I bought the truck, I needed a vehicle and unfortunately, it was when my credit was in the dump. I got an interest rate of around 18% at the time. I currently have above a 700 Fico!!

 

Fast forward to now and with the shutdown of plants and covid restrictions, used truck and SUV prices are at an all-time high!!

 

Currently on KBB and NADA, my truck with all of the features and the great condition it is in, they value it at $28,500 Private Party and $26,500 Trade-in.....Now I know these prices can vary a bit, but from friends that have sold their trucks recently, they got exactly what they were asking with NO issues.

 

So my question is.....How does refinance work? Can I refinance being just barely upside down on the loan? How does the value of the vehicle now affect the loan since the prices have jumped up? Would a private sell be better and get into a new vehicle since rates are low and values are high?

 

Thanks for any and all info in advance!!

Message 1 of 4
3 REPLIES 3
Highlighted
Community Leader
Super Contributor

Re: Refinancing Amount and Value of Vehicle??

Honestly, I'd trade it in and get a new truck with better rate, especially with the cash back and low apr promotions going on right now. If I was underwriting, I'd take into account that this is a temporary spike and values will come back down to where they should be sometime during the loan.







Message 2 of 4
Highlighted
Valued Contributor

Re: Refinancing Amount and Value of Vehicle??

With your improved Fico's and two years of good payments, you should be good to go for a refinance.

That said a lot can't afford new and prices are up on used at this time.

It is a good time to sell if you are wanting a different brand, or style of vehicle.

 

 

FNBO 2% Cashback Visa (20k) / Bank of the West Cashback MC (20k) / US-Bank Cash+ (15k)
FNBO Travel Elite (15k) / Citi Double Cash (20k) / US Alliance 3% (20k)
Ficos : 830 / AAoA : 9 yrs / AoOA : 24 Yrs / AoYA : 0
Message 3 of 4
Highlighted
Established Contributor

Re: Refinancing Amount and Value of Vehicle??

Both good options.

 

Check out all the deals going on, perhaps get some in person offers for what you are interested in.

You do not have to sign until you are happy and ready.

 

Weigh out both options (refi/tradein) and see what works best in your situ

 

Good Luck!



[Penfed Platinum Rewards 10k][TD Ameritrade-2k][BOA Cash Rewards 22k][NFCU cashRewards 33k][TDcash 5k][IHG 14.2k][BOA 15.8k][Amazon Prime Store 10k][Amazon PrimeVS 500][Amex BCE 6k][WellsFargo CashWise 14k][PNC Core 24.5k][WalmartMC 11k][SearsMC 15k][Lowes 35k][Toyota 21k][Capital One 5250][BP 10k][Home Depot 24.2k][Chase FU 6.6k][Discover 22.5k]
- [BOA CR $12.5k][Amex SC+ $13.5k][Amex B4B $35k][Chase Ink $45k][PNC $26.5k]
BT'oholic and OPM Lover! Chunk'n it hard and often!
Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.