I have a question on regards to this thread. I'm in a similar situation. I'm upside down on my frs. My credit at the time was low 600's and now I've brought it up to mid 700's. I feel I'm running uphill with my car. I have 17k left to pay and kbb value is 14k private buyer and 10k trade in. My payments are 490 with a 19% interest. So essentially in the 2 years I've been paying only 3500 has gone to the principal.
I would like to know if anyone can tell me my options as of right now. My credit has increased and my utilization on 13k is at 10%. I do not know what to do to get out of paying this much in interest when I'm upside down on my loan.
You need to refinance. Some lenders will go up to 120% of a car's value, so you could be very close to that happening. I'd check with someone like PenFed or DCU and see how high they'd lend on it. If there's a small deficit you'll need to scrape together the cash to make it up.
Do *not* roll over negative equity into a new car.
IME with refinancing most credit unions will go 120% LTV on NADA retail value for the car. So if it is worth $14k private party what is retail?
To be fair - there are some CUs that will take wholesale value. Be sure to ask what valuation they use to determine their lending calculation.
I think you need to go into your credit union or bank and tell them in person what you want to do and why you want to refinance. It is easy for them to dismiss you over the phone or Internet...not so much face to face. I actually think that you would be pleasantly surprised by their reaction. They deal with these kinds of problems on a daily basis.
Take a look at Kelly Blue Book or NADA; both will tell you the retail value.
A credit union will be your best bet. Take a look and see what PenFed will do.
That's for a new auto refi. They have another section for a preowned or used auto refi. Check it out as an option.