How exactly does a car loan work?
Question by Kelly M: How exactly does a car loan work?
I bought a 2007 Toyota Camry last August. It is still appraised at $ 21,900 in the blue book. However, I have not so great credit so I still owe $ 28k on my loan from Citi. I have been thinking about trading in my car and getting a used car that is about $ 13k or so. Is that stupid? Any help would be appreciated. Thanks!
Best answer:
Answer by FILE
IT LOOKS LIKE YOU TOOK OUT A HIGH INTEREST LOAN AND YOU ARE MAKING THE MINIMUM PAYMENT ON THE LOAN. THIS IS NOT GOOD. TRY TO GET A BETTER INTEREST RATE FROM ANOTHER BANK OR CREDIT UNION. PUT THE CAR UP AS COLLATORAL. TRY TO GET THE LOWEST INTEREST RATE OUT THERE. MAKE BIGGER PAYMENTS TO THE LOAN.
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US $4,300.00
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