What are the pros and cons of refinancing a car?

Sunday, June 7th, 2009 at 08:46

Michael asked:

I have good credit (well over 700). The resale value of my 2004 Honda Civic is well above what I owe. I'm interested in refinancing to pull some money out to pay off a credit card bill. If I do refinance, how will this look on my credit? My husband and I are also interested in purchasing a new vehicle Cialis buy cheap in the next few months and refinancing our home next year. Good idea to refinance my car?
Thanks very much!

Reply:

The interest on a used car loan is significantly higher than a new car. Sounds like your at the top of a long slippery financial slope. If your in a situation that makes you consider a loan to pay off a loan (car and credit cards) you are not in a situation to consider a new vehicle in the next few months or refinancing your home next year. Calculate you total indebtedness, how you will pay it down, then think of a loan if REALLY needed.

Finance your car here onsite if you need help buying one of these beauties :)