How do I refinance my car payment when my car is only worth $9000 and I still owe $15000?

Question

my payments are $355 a month and I'm drowning. Any help?

Answer 1

You Don't!.....

if..and that's a giant IF!! you find a bank that will do that, your rate will be huge and you MAy save 25-50 bucks a month but you'll pay $2000-$4000 more in interest, not good. To be honest, in today's market $355 for a payment is Nothing so your better off cutting back on other spending, fast food, video games, internet, costume jewelery, wiggs, twinkies, were ever you can save a little. You should try to pay down that loan asap. When it comes to saving money, forget about trying to save with a quick fix, you'll spend more. Think small now for Big long term savings.

Good luck and work you budget, don't get lazy

Answer 2

At a 166% LTV (loan to value) you are going to be very hard pressed to find a lender who will refinance for you. Most will go 150% max, which means you would have to get your loan down to $13,500 to even start to qualify.

Your best bet is to start paying it down. Look at your expenses every month and start cutting stuff out. Pay a little more every month to get the balance down and then in a year or so, depending on your credit and age of the car, you can try again when you owe less than 1.5 times the value of the car.

Best of luck