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Posted in Auto Loans
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Question By
Tluna08

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Refinance or New Auto Loan?
I have a current auto loan with a debt of 20,648 never had a late payment. Due to financial reasons I would feel better with a smaller car (therefore a smaller debt) than the one we presently have. My question is, should I refinance then sell my current vehicle (probably Car Max) and then try to get a used smaller vehicle? Or should I try to get a new auto loan before I sell my current vehicle?
The amount I would need for the new auto loan will be about 14,000 (10k for the used car and 4k for the outstanding debt I think I will have when I sell my current vehicle)?
For me the important thing is to lower my payment by about 40% than presently ($438.00).

Thank you!

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