How do I go about trading in my truck or lowering my monthly payment?

May 20th, 2008 | by Adam |
trading
Sara L asked:


I bought my 05 GMC Envoy last August. I have just had a decrease in earnings and my ARM for my home is due to go up in December. I’m considering trying to lower my monthly truck payment or trading for a less expensive vehicle.

  1. One Response to “How do I go about trading in my truck or lowering my monthly payment?”

  2. By The Auto Evaluator™ on May 21, 2008 | Reply

    I would call your lender to see how much you currently owe for your Envoy. Unfortunately, the SUV’s have taken a big hit for resale, so once you know your balance, go to Edmunds.com and look up a trade in value for your truck. Use the bottom value listed, “Fair”, as a general idea. If your balance is significantly higher than an estimated value, then you might want to look into refinancing instead.

    If you refinance, you will want to at least try to keep the rate the same, however increase your term. So if you have 41 payments left, take the new loan out for 60 months. This will increase the amount of overall interest you will pay, however it will lower your monthly payment, which fits the truck back into your budget. Good luck and I hope this helps.

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