Trade in or keep?

[Anonymous]

Hey friends!

I have a 2010 Toyota Corolla that I financed in 2018 with Credit Acceptance (I know). I was told that I could refinance in a year, but that ended up being a lie because in 2019 the car was too old to refinance.   I also couldn't trade it in cause I was so upside down and my credit wasn't so hot so it wasn't worth getting into a new Corolla for 600+ per month.  My payment is 309 per month.  Comfortable, but doesn't make sense (to me) for this car. I ate it cause I'm a repo queen.

For the past 6 or 8 months, I been paying 500 per month to catch up to that negative equity. So far, my payoff is at 5600 and kbb is around 3200.

My question is, should I try for a trade in now or just pay this off?

I heard Toyota are the cockroaches of the car family; they last forever.  I considered keeping it and leasing a second luxury car.  My credit is significantly better as well, and, because I've entered my 3rd year with my insurance policy,  my insurance premium has also decreased. 

Should I trade this one in, or keep it cause it's gonna last me anyway?

Thanks in advance! Even though I lurk a lot I really love it here.

[DebtStinks]

My 2 cents here...

You only owe $5,600 (even tho KBB is 3200) and your payment is $309.

I'd keep it and either trade right before payoff (1-2 payments left so your "established" auto credit is still reporting and ACTIVE) 

OR

Drive it until the wheels fall off since it's a Toyota.

Best of luck!

[Harvey26]

@Anonymous  I would look into a credit union to try to refinance or if you can afford to keep paying $500 a month I would keep going sounds like you about a year maybe less from payoff. I would really just pay it off and not open a new credit account but if you need the extra money for something else then I completely understand. Any other derogs on your report?

[sccredit]

How many miles are on it?

[Anonymous]

---

@sccredit wrote:

How many miles are on it?

---

Over 112k miles

[Anonymous]

---

@DebtStinks wrote:

My 2 cents here...

You only owe $5,600 (even tho KBB is 3200) and your payment is $309.

I'd keep it and either trade right before payoff (1-2 payments left so your "established" auto credit is still reporting and ACTIVE) 

OR

Drive it until the wheels fall off since it's a Toyota.

Best of luck!

---

Thank you!

Since you put it that way, I think I will just finish paying it off this year.  I am applying for a mortgage in March of 2022 (fingers crossed)and I'll just lease a new luxury car after closing, with this one as my everyday vehicle. 

[Anonymous]

---

@Harvey26 wrote:

@Anonymous  I would look into a credit union to try to refinance or if you can afford to keep paying $500 a month I would keep going sounds like you about a year maybe less from payoff. I would really just pay it off and not open a new credit account but if you need the extra money for something else then I completely understand. Any other derogs on your report?

---

Yeah I have an old credit card that keeps reporting late every month. I also caught 3 latest on my revolvers cause of Covid and none of them will budge so I'm just letting them age.

The credit unions won't take it cause it has too many miles (over 100k).

[Anonymous]

---

@Anonymous wrote:

---

@sccredit wrote:

How many miles are on it?

---

Over 112k miles

---

As a Toyota, it's basically just getting broken in. Pay that baby off and drive until the wheels fall off.

I did a similar thing. I daily drive a 2007 VW in great condition, bought a house last year, and after that, bought myself a used fun car as a second vehicle. What I wanted was in the $40k range new, but I compromised with myself and found a used one for $20k.