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!!
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.
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.
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