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The central question is, what are you going to do with your existing car? If that car is collateral for the $15K loan, you can't sell the car as long as the loan is unpaid. So, you could pay off the loan; or you may be able to refinance the loan, however you would have to put up some other collateral. Refinancing is simply taking out a second loan (hopefully at a better rate), using that to pay off the first loan, and then making payments on the new loan. Refinancing is not in your best interests unless the interest rate is lower than the existing loan and the origination charges don't use up any savings from the refinancing.

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by R T

7 months ago

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