ok here's the deal.. i got roughly $19,500 left to pay of the car, and my payments a month are around $500....about $100+ of it being interest.... i'm currently un-employed and i'm trying to bring my payments down... i can put down $10,000....

so my question is... should i re-finance the car and put down $10,000 so i have around $9,500 left? and get a new interest rate and monthly payment? (if it's possible) or should i just make a huge payment on my loan, and keep my current interest rate? by the way, there is no penalty if i end up paying it all off before hand....

 

um.. who's going to finance you if you are unemployed? You might want to consider that first...

I would just save that $10,000 and use that while u are unemployed. I am sure you will find employment before that money runs out.

 

I think I agree w/ Peter on both of his points. No need to throw $10,000 into reducing your payments by $100/month. That'd be 100 months worth of payment reductions if you hadn't put it in. If you can't find a job in the next couple years, that's pretty bad.

- Jeremy (jnn4v)

 

I agree with both Peter and Jeremy. I'd worry about paying basic expenses until you have a job. Use that money for those. Then only consider paying down your loan if you have *at least six months* worth of income saved to live on, in case you are unemployed again. I wouldn't even do it then, considering most peeps' high interest rates are on their credit cards. Pay off those as quickly as you can when you have the chance, and try to pay them off each month or keep a low balance. Good luck!!

 

I think everyone is going to tell you the exact same thing you're being told here - all good advice


And I wonder how long it will be before someone posts up - "Screw that, take the 10 grand and buy a turbo"

 

yeah i payed off everything already.. got nothing other then car payment and insurance..

thanks for the advice....

 

Screw that, take the ten grand and buy a turbo.

 

I knew it would be you

 

On serious note though... i highly recommend what everyone else is saying. Just take the money you do have and save it, use it while you try to find yourself another job.

 

Everyone is giving you a great advice by saving the money and just continue the payments. However, you can refinance and still keep the money. Why not have the best of both worlds? Find a credit union, such as Nasa or Navy, that has a great interest rate on financing used cars. You don't have to do a five year loan and there won't be any prepayment penalties. I know cause I did it after a year of owning my car. You do need the qualifications to do it though. Your credit must be good and a career is a requirement.