@vampireszombies wrote:
This is possibly a stupid question but I was wondering if its a good idea or even possible to trade in a vehicle after a refinance?
I purchased a new car in Feb 2014 with a rate of 11%. I will either try to again refinance by myself in about 4 months or my brother may possibly co-sign a refinance for me soon. I tried refinancing a couple times since getting the car and was denied both times mainly because of my income (which my brother can help me there). I have been paying more than the amount due each month.
So my question is: once the car is refinanced and the total amount wont be upside down anymore, can I trade in the car if I wanted for possibly something cheaper? When getting said car, would the refinance carry over or would I have to (if needed) refinance all over again?
Thanks for the help. If any additional info is needed please ask I will reply asap.
^^^I am a little confused on your question. When you trade in the vehicle you have for another one, the equity (if any) is applied to the new vehicle. You have to either get new financing for the rest of the purchase price of the new vehicle or pay cash for the difference between the equity from the trade applied and the purchase price.
If your current vehicle does not have equity, then you are transferring "negative equity" to the new vehicle purchase which is the same as adding to the purchase price.
You don't transfer your financing in either event. The refinance you are planning to do with your brother for the current car is specific to the car you finance.
