Before you take this line of thinking too far, what is the loan rate (Annual Percentage Rate or APR) on your current loan? Next, what is the APR you can find for financing a used car. The value of your car went down when you first started the vehicle and the cost to refinance it probably went up at the same time. If your car is less than two years old, you may be able to refinance at a new car rate. beyond that time frame,expect to pay a much higher APR than you may have gotten on your original loan. Also, check your copy of your loan papers to see if you can pay off your existing note early and,if you can, is there a penalty for pre-payment. Now, you should have all of the information you need to make an intelligent financial decision.
It's best to check the loan docs to see. Some loans do not allow for early payoff (or they may, with a penalty). You could also just call the loan servicing agency to inquire.
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