We bought a van 3 years ago for an outrageous interest rate.. had yucky credit at the time. now we are doing much better but the finance company wont refinance.. can we refinance with another lender? we owe like 8k and its worth 4. ouch. also considered trading it in for another one, taking the loss but getting a lower rate on a newer vehicle with new warranty etc. the old one is starting to nickel and dime us..or should we just pay it off and never ever do that again??
2006-09-02 18:36:06 · 8 answers · asked by turtles 2 in Cars & Transportation ➔ Buying & Selling
If you're 4 grand 'upside down' & your credit situation is improved then buy a NEW vehicle that has at least a 4 grand rebate to take care of the negative balance & let the dealership get you lower finance rate through manufacturer owned lender.
For example Ford Freestar has a $5000 rebate & Ford Motor Credit offers low finance rates.
Ford warranties their vehicles for 5 years or 60,000 miles at NO additional charge so you won't be paying (nickle & dimeing you to death) for repairs.
Your situation is not unusual......most people who trade in before they actually own a vehicle are even more upside down than you are.
If you're in the Chicagoland area, I'll be glad to show you some options. If not, I suggest you find a reputable sales person in your area to help you. Talk to friends, relatives & neighbors to get referred to a salesperson that they know & trust.
Your credit situation should NOT be discussed online or on the phone.
2006-09-03 06:46:34 · answer #1 · answered by Vicky 7 · 2⤊ 0⤋
If you're that far upside down after 3 years, trading it in is only going to put you in a worse situation than you're currently in. That negative equity has to go somewhere -- right into your new loan. While a new vehicle may be more dependable, your monthly payments are likely going to be higher than what you're paying now even with better credit.
You can try to refinance with another lender. But again, most lenders will only lend the retail value of the car. Some will only lend "loan value" which is typically midway between the wholesale and retail values. Shop around though, it may be worth the effort.
2006-09-03 03:10:06 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
NOW days the dealerships have may tools to use to get you in the ride of your dreams AT A EXTRA COST TO YOU, if anyone has a credit past that has bad spots,you get a different credit plan than most would want,at a very high finance charge to cover the hassle they worry they may have,please next time take the papers on the loan home with you away from the stress and pressure of the car lot, read all the fine print before you buy, a factory lease car is a good choice they have low miles and are priced to sell,many with some warranty still available,trade in for /Honda/or /Toyota/others will not live 300.000 miles, add your payments for the term of the loan on paper see what it is really going to cost in the end.then cost for Insurance for the life of the loan, fall and winter are bad sales times for car lots wait till then for the best deals, ..my family has 35 years in car sales,,, good luck to you.
2006-09-03 02:08:34 · answer #3 · answered by JALISCO 2 · 0⤊ 0⤋
if you have a house get a line of credit, the rate on that is much lower. if not, sell the car pay off the loan. because the more you are paying now, you end up losing more! trust me i work at a bank. =)
2006-09-03 01:41:31 · answer #4 · answered by Young 2 · 0⤊ 0⤋
Young's ideea isn't bad. How about paying the damn thing off, driving junk for a while, and paying CASH the next time? Solves all the problems that way.
2006-09-03 01:42:56 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Suck it up, pay it off. If you trade it in, you'll only be perpetuating the cycle - in 3 years you'll be in the same situation just owing more. I'm just getting out of that cycle, there is no quick fix to the problem.
2006-09-03 01:44:19 · answer #6 · answered by xtowgrunt 6 · 0⤊ 1⤋
WHO TOLD YOU YOU CAN'T REFINANCE WITH ANOTHER LENDER? THAT PERSON IS AN IDIOT. YOU CAN REFINANCE ANYTIME YOU WANT WITH ANYONE YOU WANT.
THE BEST THING TO DO IS FINISH PAYING OFF YOUR CAR THEN DRIVE IT COUPLE MORE YEARS WHILE STASHING THE MONEY IN THE BANK. THEN YOU SHOULD HAVE AT LEAST $5000 FOR DOWNPAYMENT ON A NEW CAR.
DONT BE SO STUPID NEXT TIME.
2006-09-03 09:57:29 · answer #7 · answered by Laff 1 · 0⤊ 2⤋
Before you do anything, I would try to repair you credit a bit further. I would use http://www.lexingtonlaw.com/Home.php?tid=142.0.1 if I were you.
2006-09-03 16:31:32 · answer #8 · answered by Byron W 3 · 0⤊ 1⤋