Background
My family is growing and I find my current car (a two-door GTI) inconvenient. I am in the market for a small, used SUV such as a Tiguan, CRV, or Equinox. I will be financing and plan to keep the purchase under $15,000. I currently have a horrible deal on my GTI, paying $320/mo at 8%.
I don't want to trade in the GTI. I would be upside down on it. Bad deal. Because of mods (uugh) and a major engine and steering restoration which likely won't be taken into account if I trade in.
Additionally, I recently closed on a mortgage refinance and have a decent credit score 700 - 715.
There are about 2 weeks left in December and I am seeing great deals all around.
Question
Which would be a better money move? My concern is in the order of things. Will refinancing first upset or help my new (used) car purchase?
- Refinance the car loan to reduce the interest charge. Then, purchase the SUV.
- Get a personal loan, pay off the car along with $1K of credit debt, then finance the SUV.
- Finance the SUV first.Payoff the current car loan and credit card debt second.
A final detail, my escrow balance will be paid out and could cover all credit card debt (or a good portion of the personal loan if I choose to go that route). In addition, I plan to be free of the current car (GTI), and credit debt using my tax return (in 4 months) regardless of which action I choose. Getting a good deal on the new purchase is most important...