Trade in?

[dep05]

We bought our car right after bk was final about two and a half years ago. We refinanced 6 months after, but it didn't really make much difference. The payment is still incredibly high and we still have at least 3- 3 1/2 years left on the loan.

We just got an ad in the mail advertising trade-ins and getting a new car. I was wondering what the chances are that we could trade-in our current vehicle for enough to pay off the loan and get another car at hopefully a much better rate/payment?

The payment on our car is killing us and it would help so much to have a smaller payment. We aren't all that attached to our current car, as it wasn't what we wanted to begin with, but at the time our options were limited.

Does anyone have any experience with trading in and getting a better loan?

[BK2008]

Check Kelly Blue Book, and see what the trade in value is on your current vehicle. Then compare that with your loan on the vehicle.
If you owe more than what you'd get, you will have an upside down balance that you will either have to pay down, or roll it into another vehicle, which is going to make your situation much worse.

Refi will not really help you at this point, it might lower your payment a little, but overall extend out the loan (and pain) for a longer time.

I have done this a few times, and this is part of why I am in BK.
Never again will I finance a car with high dollar, and never again will I trade it when I owe more than it is worth.

[BK2008]

Also, be very careful with these mail 'advertisements for financing a new car. Some of them are absolutely predatory.

Make sure you go through a reliable dealer. Pass on those small car lots that have 'E-Z FINANCING LOW DOWN PAYMENT' signs on their lots.

[twuoo]

Take whatever numbers you get from kelly blue book and cut them by 50%-75%. That'll be what a trade-in is worth to a dealer. That has been my past trade-in experiences.

[HopeFaith]

It really depends on the eagerness of the dealership to get a car sold. In the end, it boils down to their bottom-line profit. They might give you full value for your trade, but you'll be paying a high sticker price for the car. A car purchase loan is much easier to obtain than a refi (never understood that). I recommend you get into something that you plan on keeping, so you can focus on paying it off.