Hey guys! Hoping you can give me a bit of perspective on the following...
Back in 2016, I purchased a new Ford Focus out of desperation because my existing vehicle was dying quickly. (It wouldn't even crank again once I got to the lot! lol) My credit at the time was in the 500s, so I got a crappy interest rate of a little over 15% and a monthly payment of $450. Top that off with the fact that a Ford Focus isn't exactly ideal for a big guy who's 6'5, but hey, you do what you gotta to do. 🤷♂️
Fast forward to today and I'm much better creditwise: FICOs of 650 and 675 on TU and EX (706 if you include FICO 9). Based on KBB and Edmonds, it looks like I'm about $6500-7000 upside down on the loan which matures in September of 2022. In line with the title of this post, I'm considering the following:
Refinance - get another loan at a lower rate, but not sure if they'd cover the negative equity. If not, this wouldn't be a viable option for me because I don't have that much cash on hand.
Trade In and Buy New - get a new vehicle at a significantly lower rate and hopefully with some factory/dealer incentives, but would need to roll over the negative equity into that loan. Unfortunately, that would raise my overall loan amount.
Stay Put - ride out the current loan until it matures in 2022. My only fear with this is the possibility of some type of transmission issue which is a known problem with this model. I've had some shuddering that I had them fix maybe a year and a half ago, but the problem came back. There's some class action stuff going on, but who knows when that would actually kick in in the event that I had issues. Don't really want to be stuck with a bum vehicle that I'm still paying on.
As I said in my opening, I'd really love to get you all's opinions on the matter just to help me process things and make a wise decision moving forward. Thanks!!