Here's my question to yall. I have the oppurtunity to refinace my HHR to get lower payments. It would take my payment from 400 a month to 275 a month. I really would like to do it but it would extend my loan for 2 more years onto my current 4 yeaR loan. Not sure if its worth it since I have seen how much these car dont hold trade in value. whats your opinion? Don't be affraid to comment cuz thats what Im looking for is ur opinion.

 

I figure by the time either loan is over, there won't be too much of a difference. Me personally, I like to pay mine off early.

 

what is worth more to you? $125 more each month for 6 years. or $400 each month at the end of 4 years and having the car paid off.

 

You will be upside down with the loan ie you will owe more than the car is worth is not a good position to be in. Pay it off in the four years, then stick $400 in the bank for the next two years and you'd have nearly $10K in the bank for the next car.

 

I would re-finance and put the money you are saving each month to more creative uses. If you saved the $125 per month difference, in 4 years you would have $6000 saved. You would still have 2 years of payments at $275 per month, which totals $6600. The payoff amount by that time would be quite a bit lower, so if you used the all the money you saved and applied it to a loan payoff, you might get away with ultimately spending less on the HHR than you would have if you had not refinanced. Admittedly, that would take a lot of discipline. And life can change quite a bit in 4 years. Making occasional double payments on the refinanced loan would also lower the payoff amount in the future. Finance charges are based upon the unpaid balalnce.

There are many ways to approach the issue. My own HHR is financed for 72 months and I traded a vehicle that I owed far more on than it was worth. So I'm paying 25 grand for an HHR that was 18 grand brand new. I like my HHR enough to say that I don't mind my situation. I hope I can keep feeling that way as the years go by.

 

Kornellred I'm in the same boat as you. I traded a vehicle I owed more than what it was worth in on the HHR so my 21k dollar HHR went to 31k by the time I pay it off after 72 months. I bought mine in a hurry didn't shop around, Brand new and had no deals or breaks from the dealership. I have 25 of the 72 months paid off already by me selling my old truck I had since highschool. The reason for the refinace is because my ex left me with the car. I originally bought it for her cuz we needed a family car. Now I have that 400 dollar payment alone and is hard to afford life with it. So thats why I'm asking. Thanks for all the comments so far keep them coming.

 

Could Go either way. Depends on your Personal Spending. Are you working now etc Either way the HHR is going to be worth nothing when you trade it in.

 

Do you carry any balance at all on your credit cards? If you do, and the re-finance is a lower interest rate than your credit cards, then do it and put the $125 towards paying down your CC balance.

 

My car is already depreciated way lower than my pay-off.

 

I would keep it as is, and just pay off sooner. I re-financed a car a few years ago, and by the time was into that extended time, I no longer wanted it, and was upside down on it when I traded it in. Thanks to that my 20k hhr was 29k. Its not something I would do again, its better just to pay off, then see what you want to do.