Need help please!!!

[Anonymous]

Ok, so I'm new here. With that said, would it be better to pay off my car $9,000 on the loan and it's worth like $6,000. I could also sell it for around $7,000 and just pay $2,000 to pay off the loan and put the rest for a newer car or just sell it once we have the cash to pay for a new car a year down the road? Either ways I would be having negative equity on the car.

[Anonymous]

Since you're already underwater and it's lost value, it'd make more logical sense to keep it and pay off the loan, rather than go even more underwater on a new car that'll also lose value the second you take it off the lot. 

[SouthJamaica]

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@Anonymous wrote:

Ok, so I'm new here. With that said, would it be better to pay off my car $9,000 on the loan and it's worth like $6,000. I could also sell it for around $7,000 and just pay $2,000 to pay off the loan and put the rest for a newer car or just sell it once we have the cash to pay for a new car a year down the road? Either ways I would be having negative equity on the car.

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I agree with @Anonymous that you should just keep paying down the loan.

[M_Smart007]

Welcome to the forumsI

I will echo the others ..keep it!

[RSX]

we dont know the rate on your loan, but if it is under 4%, i would put $4k on the loan, and put anything left in savings

then you wont be underwater on the current loan and can keep making payments on the loan

then trade the car in next year if you need a new one

most cars will last longer than we expect

[Anonymous]

The interest rate is super high like 11% 

[RSX]

ok - so the other option is to Refi it with a CU - with good scores you could drop it to 2.9-4.5% or so

right now it is costing you $82/month in interest

i guess we dont know your scores or savings situation, or any other debt, so it is tough to specify

do you have the full $9k to pay it off?  if so, go ahead - then keep the car as long as it is reliable and not costing more than $400 a month in repairs

once it gets over a Car payment in repairs on a monthly basis  - that is when you get a new one

[Anonymous]

Agree with those that said keep it and pay it. When you have the funds for the next vehicle you may wish to donate the first car.