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Posted in Auto Loans
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Victimofreality2

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Should l trade or refinance?
Financed car Honda Hybrid insight 2010 for 11 grand, pay off 11 grand trade in value 3 grand, interest rate of 27 percent should l go to Kia for refin2and get a car in 7 months or just refinance? Had since February.

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Let me see if I have this right.  You owe 11,000 on a car that if you trade, they will give you 3,000.  This means that you will still owe 8,000 on a car that you do not have.   That whatever you trade for, will be financed for 8,000 more than what that new car is worth.  If it was me, I believe I would be looking to see if refinance was an option to lower the interest and then find a way to pay off 8,000 of the principle as quickly as possible.  Any time you trade, your goal should be to to get more for the trade than you owe on the automobile.  You would be better off selling it outright as long as you were prepared to pay the difference between what you can get and what you owe on the original amount.  This would give you a positive on your credit score for a short period of time that you could use to your favor as you look for a different car at better finance options. 

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Yeah Kia said come back with better score at least 1 grand in hand or so, and they pay off my lender and put me in their brand new car. They laid trade in value for my car is 1
3 grand and l have gap insurance as well

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