"Is there any way to refinance a car that is worth $5,000 that I owe $11,000 on? "
"I bought a used Kia two years ago, putting $1,500 down. My car loan interest rate is nearly 23%.
I have applied for a refinance loan with a few banks, but they have all denied me. Is it possible to refinance this kind of loan?
“The only way to refinance your Kia is to pay down the loan until you are no longer upside-down on it. At that point, you can apply for refinancing.
When you finance or refinance a car, the loan is secured by that car, which means that the vehicle needs to be worth the amount financed.
Unfortunately, because of your high interest rate and your low down payment, you have been paying more on your interest than your principal. This means you still owe almost the same amount of money you bought the car for two years ago, but the car is no longer worth that much. “
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
How long does it take AAA to respond to roadside assistance calls?
"I'm looking at roadside assistance memberships and AAA looks good. I'm just worried about their response times. How long does it take AAA to respond to a call?"
Jun 21, 2021
If I make $1,000 a month, will I get approved for a $30,000 car loan on a Mitsubishi Outlander?
I make $1,000 a month, and I have my eye on a new Mitsubishi Outlander. Will I get approved for the $30,000 balance if I put down $5,000 toward a loan?
May 05, 2021
Why did my uninsured motorist claim go under my collision coverage instead of my uninsured motorist property damage coverage?
"My vehicle was deemed a total loss at $35,000 after an accident with an uninsured driver. I have a $1,000 deductible for collision and a $250 deductible for uninsured motorist property damage. My insurance made a mistake with the initial claim as my property damage limit is $25,000. I now have to pay an additional $750 for my collision deductible as they switched the claim. Why am I paying for their mistake?"
May 10, 2021