Refinance for a New Car

by Tecole
(New Orleans, LA )

Question: How can I trade in my old car with a current car loan for a new car with financing? I have payed 443 dollars for 21 months on a car but want to get a new car and loan.

What should I do? How can I be refinanced on a new car with the same lender? I'm always on time paying my car loan and have never missed a payment, but I really need a new car year 2009-2010.

Thanks, Tecole


Answer: Hi Tecole,

Good news! Your problem is a very easy one to solve and on a daily basis, thousands upon thousands of people do exactly what you are trying to do.

You actually wouldn't be trying to refinance for a new car, but you'd be looking to trade your old car in for a new car.

Here are two options for you...

1) Trade your current car into a dealer and they will arrange financing for you.

2) Sell your car on your own and arrange your own financing with your current lender, or possibly another.

Option 1 is usually the easiest and quickest. One problem you may encounter however is if your trade in (current car) is not worth as much as you owe on it. In this case you may need to have some cash to put down on your new vehicle.

I'd contact a local dealer for help with this as they handle this type of situation daily. Since you are looking for a new car, take a look at TrueCar.

This will not only get you in touch with some local dealers, but it is extremely competitive and seems to be the way of the future for buying new cars.

Let me know how things go and of course, if you have any more questions don't hesitate to get back in touch with me.