Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!


Posted in Auto Loans
Profile Image

Question By

0 Contributions
0 People Helped
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!

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.


Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.