I hope this make sense…I was thinking about trading it in for a possible better deal…please tell me how this entire process works, from the beginning because I am very new to this.
Suggestion:
You have barely paid any principle on the vehicle with that kind of interest rate. You have some serious negative equity there and will need to come up with a few thousand dollars just to break even.
Keep paying on your current car. Even if you have a few thousand in the bank, it would be a wiser idea to apply that amount to the principle loan of the car and then refinance at a lower rate.
If this is an option, talk with a credit union for refinancing. They offer the best rates.
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but someone told me that since I didn't have hardly any credit at the time, i now have really good credit, I can trade in the car I have now for something with a much lower % rate and it will be a better deal for us,instead of paying off this car we have now for another 5 years.
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That would be wrong.
Unless you have the cash needed to cover your negative equity ready to fork over when making such a deal, you're stuck with this car for five years.
Nobody forced you to sign a contract with 24.9% interest, but you'll be forced to pay it off, that's for certain!
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