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I have bad credit,still owe on my car,want to trade it in,get something with lower payments.Can I and how?

Question by wheekie1: I have bad credit,still owe on my car,want to trade it in,get something with lower payments.Can I and how?
My car payments are too high,but current.I do have bad credit though.I still owe on the car.I’d like to refinance to get lower payments or trade it in and get something cheaper.Is it possible to do either of those things in my situation and if it is,…how do I go about it?I’m really in a bind!

Best answer:

Answer by mree
It depends on what your looking for. I would refinance the loan to get a lower interest rate(if you can) and lower your payment. Watch out though you may not want to refi at a longer total term. I.E. if your initial loan was 5 years and you paid one year on it, don’t refi for 5 or 6 years you’ll be paying longer than the initial loan. You could try trading in but make sure that you know the interest rate and amount to be financed first and try to get approved through your bank as a back up. If you go back to the finance manager and your rate and payment are out of your budget don’t go through with it. Tell them it’s too high and you can’t afford it.

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4 Comments for this entry
hondab16tuner
May 30, 2011
20:44

There are a lot of variables here. Is the amount owed more than what the car is worth? If it is then you are what they call “upside down” on the loan. The only way to lower your payment is to refinance and thats only if you aren’t upside down on the loan. You can refinance the current amount owed for a longer period. If you trade it in you are more than likley going to be paying more because the amount owed on the current car will just be added to the cost of the vehicle that you are trading in for. Say you paid $ 10,000 for a car 2 years ago, and now the value is $ 4,000. You still owe $ 6,500 on the car. starting out you are already $ 2,500 upside down. MOST finance companies (banks,and other lenders) only loan 85% of the current value of the car. So now you can only finance about $ 5,000, leaving $ 1,500 in the air. Intrest rates also play a HUGH role in the amount of your payment. A person with great credit would get a 4-6% interest rate will pay about $ 70-$ 100 LESS than someone with poor credit and a 14-18% interest rate.

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UCANTCME
May 30, 2011
21:00

IF YOU DO THIS YOUR PAYMENT WILL MOST LIKELY BE HIGHER THAN BEFORE BECAUSE YOU WILL HAVE TO ADD ON THE BALANCE OWED TO THE NEW VEHICLE AND YOU WILL BE UPSIDE DOWN.

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Kamaru
May 30, 2011
21:06

Try this company http://www.batfa.com They may be sell you a car on monthly installments.

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zwl88796
May 30, 2011
22:04

You could trade it in but it depends on how much neg. equity you will be rolling into a cheaper car. It depends on the bank also. They will do a LTV (loan to value) on the car (how much its worth compared to what you are buying for). The only good way is to lease a car. If you can stay within the allowed miles and are easy on cars than its a good idea. Leases are usually lower payments since your not paying full price for the car, and any negitive equity you roll into the car is payed off at the end of the lease. Check into it and see what happens…

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