Toyota Financial

[Anonymous]

Hi All,

Im new here so pls bear with me...hopefully I'm posting under the correct subject. I have a 2012 Camry with $12k left on my loan through TFS. My credit wasnt good when I got the loan 3 yrs ago, so I'm currently paying $330 mos/ 7.55% APR.

My question is should I refinance my car for a lower rate, trade up or lease and should I try going through TFS again or a credit union?

current 6-18 FICO 8 scores: EX: 682 EQ: 649 TU: 629

[Anonymous]

Refinance through a credit union. 

[Anonymous]

Thank you for responding! So I shouldn't even try trading it in for a newer vehicle?

[Loquat]

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@Anonymous wrote:

Thank you for responding! So I shouldn't even try trading it in for a newer vehicle?

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Not unless you're wanting to purchase a new vehicle.  I certainly wouldn't go back into debt just to get a lower interest the second time around...I'd try to refinance like its been mentioned. 

[Anonymous]

Just try to look for the best dealer and then canvass for the trade-in and get a new car that you want. In that case, you can find out in what way you will get advantage. For me, there's no harm in looking for other dealers. Surely, you can find the best that will suit to your need. 

[Anonymous]

I would recommend trying to refinance your current loan through a credit union.   If all you're trying to do is get rid of the debt this is the best option. A well maintained Camry will easily reach 160k+ miles so make sure you keep up on basic maintanence and hold on to it as long as possible. 

If you just have to get rid of the car, make sure you know how much the car is worth and how much negative equity you have.  You could, in theory, lease a new car and roll that negative equity in and that would work like refinancing your current loan. The upside is that you refinance your debts and get to drive a new car.  The downside is at the end of your lease you do not own the car, and would have to re-lease or purchase another new car.