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Posted in Auto Loans
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Flyntp

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Refinance truck or buy new?
I have 42 payments left on 2011 truck, thinking of downsizing to Jeep Patriot or Compass. $23K left on truck at $731/mo. 582 cs. What are your thoughts? Should I go for the Jeep or refinance the truck? Looking to downsize both the vehicle and monthly payment.
Thanks for reading :)

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WOW you make 731/mo payment for a Truck!

I'm making a 220/mo for a 2013 Dodge Dart and 330/mo for a 2012 Dodge Journey.  ( Plan it to pay one off this year and the other one next year )  the intrest rates are 2.8 and 3.3.

Find yourself a nice Used Jeep  Get your payments way down.   Save the extra cash ( Bank it away )   and I'm sure the Jeep would be better on Gas.

Good Luck

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I think when you trade you almost always lose $.  Stick with your truck It will hold its value and when you get refinanced make sure interest rate is below 4% Its a very competive market right now.

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DONT DO IT!

The biggest thing you have to consider is what will carryover to your next loan. If the truck isn't worth as much as the loan is to pay it off then you will have to finance the amount left over plus your new vehicle loan which will make you completely up side down in your loan. This means you will be paying more for a vehicle that doesn't even come close to the value of the vehical. Your chances of gettting a dealership to buy your truck for 23K is very low. They will probably offer you somewhere around 16 to 17K depending on mileage and condition. Your best bet is to keep paying on the loan until you have 18 months left on the loan, or until your payoff amount is less then what is offered for the truck. Right now it would be the worse decision you could make, expecally with your score being in the high 500s. The intrest on the new loan would be somewhere in the 18 to 21% mark.

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