No. of Recommendations: 11
Basically I don't want to use my credit cards and pay 15% when I can trade this in.

Yes, because a new car and a new loan always solves the issue. At least it did 3 1/2 years ago when you bought your new car, that you haven't even paid off yet.

Dude - If you charge $1500 on your credit card and take 2 full years to pay it off at 15% (payments of $73/month), it will cost you a total of $246 in interest.

Arizona Federal's current rates are 2.74% for a 48 month loan ($440/month payments), 2.99% for a 60 month loan ($359/month payments), 3.24% for a 72 month loan ($306/month payments) or 3.74% for an 84 month loan ($271/month payments). These loans would cost you between $1,140 to $2,763 in interest - between 4 1/2 and 11 times the interest that your credit card interest would cost you.

And if you pick one of the longer loans in order to get a lower payment, you run the distinct possibility of being upside down in your loan when, in 3 1/2 years when the car, like your current car, requires $1500 in repairs.

Basically I don't want to pay $28,000 again for a car.

Don't forget all the interest you have paid, when you haven't even paid it off completely yet. Probably closer to $32k.

But I'm sure you already have your mind made up, and you are going to buy your 2nd new car in 3 1/2 years.

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