@firemartinez1980 wrote:I have a 2016 Silverado Crew LT with 80K miles.....Others I have talked to that had similar vehicles they traded in got between $21,000-$28,000. My issue is, when I bought the truck just over 2 years ago, my credit score was 585 and I had a collection on my account, so the interest rate I got was like 50%, haha......Fast forward to now and I have paid off all credit card debt, deleted collection from my reports and have raised my Fico to 703 and I believe my Fico 8 (Auto) is 680.
The payoff on my truck is $30,000 and if I could get $26,000 for it that would leave me $4000 in the hole which I could apply to a new vehicle I would guess.
My current monthly payment is $775
So the question is.....Should I trade in and get a new vehicle with all these year end deals and hopefully get a 5% or less rate or refinance at a higher rate and keep my vehicle.
Basically I need advice and opinions....It seems no matter what route I take, the monthly payment will still be roughly around the same, but at least I could have a brand new vehicle under new warranty
Check the NADAguide value on it, this is what *most* credit unions use to determine the value of the vehicle before issuing a loan.
If there is nothing wrong with the truck and you don't drive 50,000 miles a year AND the amount owed verses value isn't more than 110% I'd refinance with a local credit union or even an online credit union like PenFed or DCU.
While you get the comfort of warranty from a new vehicle, trading one in that is upside-down, just puts you more upside-down. You can expect that new vehicle to depreciate significantly that first year, typically the value drops faster the first 3 years than in does the next 5 years.
If you trade in, try not to get a loan term longer than 60 month's, 48 would be better.
I was told year's ago, if you can't afford the payment on a 36 month loan, you can't afford the vehicle.
This still holds true if you think about it... a 48 month loan on a typical new vehicle will be upside-down for the first 18 month's (because of interest and depreciation-- assuming no down payment) on a 72 month loan you could possibly still owe more than trade in value after 5 years of payments.
Just my 2 cents.
