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goldenlass

Ok I have had my car for about 4 years now and my interest rate is high i have a little less than $10,000 to pay off the rest of my loan but my blue book value for my car is less than $5,000, someone told me to refinance my car loan to bring it down a couple dollars or trade it in. but the problem also is i recently loss my job and the company i have my loan with won't refinance it because i have no job so finally my question is can i go out of state to trade in my car and maybe get another car with lower payments without an income. i have a settlement so i have some money to pay it off i just don't want to have to pay double the amount my used car is valued. thanks in advance

Rachel9993

You shouldn't be looking for a new car...just keep driving the one you have. Once you pay it off, just keep driving it for as long as you can. That is the best option from a financial perspective.

IJToomer

Good luck. You can trade in your car, but they aren't going to give you $10,000 for it if it is KBBing for 5. So, say you trade it in and get 5 for it - and now you have another car with lower payments that say you get for 10K (paying 15K total), now you still have the other 5 on the original loan which you may be able to roll into a new loan, now bringing up your new car to 20K. I'd say to pay it off, if you have the money. You will save some in interest at least. I don't think many places will give you a new loan or refi your existing with no job. Good luck!

ed2563

You will not eliminate the difference in loan balance and the value of your car.Even if you are able to trade, the new car will be inflated to include the difference. Therefore, you will mearly be financing the new car including the difference.The moment you drive out of a dealership, the value of a new car will be less than the loan balance, and far less with the additional 5 K in the new loan.In a few years, you will be in the same position as you are now.As for financing out of state, unemployment won't fly anywhere.This is the result of too many years of financing cars.

stanc7391

If you're half way through on your car loan, you paid about 70% in interest. No car will keep it's value after a couple of years. If it runs, keep it. It's still cheaper to repair it then to trade it in