[Ray paulsen]

Your question is a good one for all to see, you fell into a trap that many consumers still don't understand, I am kind of blown away by your question as it's very close to what I am trying to preach, here is an insert from a web page on my website about your question.


You buy a car $ 12000. with little or no down payment with a 60 month term you return to dealer after one year having made payments on time and lets assume your credit score has improved a notch I say assumed becauce 99% of the time it has not, Take away from the $ 12000. taxes - dealer profits - vehicle depreciation ( if you got sucked into an extended warranty or other after market products, your on dead row) my guess is your trading a vehicle worth about $ 6000. and with the high interest you been paying you still owe over $ 10.000. that is about $ 4000. negative.
It gets worse, drive the same car 3 years and you will owe about $ 6000. on a car thats worth $ 1000. or less. If your interested go to this link to read the full understanding how to deal with blemished credit. http://www.usedcartips.org/CREDI.html

The sad news here is your making payments at $460. per month that don't cover the depreciation factor, I can't really make to many comments on what route to take as I don't know your history credit score or your payout at this moment ?... your $2500. saved will only go towards the payout before you buy another vehicle, where you go from there and at what Interest rate will be the key to get back on your feet.