Should I stay with my loan or trade in for a used car?

I have a 2006 Rav4 that I am paying $641/month for and my wife has a 2002 Camry that is paid off. Should I continue to make the payments on my Rav4 or would I be better off to trade both of our cars in for two used cars? I would love to lower my loan payment; however, I wasn't sure if this would do that or not. If not does anyone have any suggestions for me?

Answer:
You shouldn't trade both in, if one's already paid off and it's still in good condition then I'd keep it....what you could do tho, is with the 2006 you already have, depending on how long you've had it and how much you still owe on it, then you could take it and trade down for a used car. There are some ''new used'' cars out that that aren't all that bad, people have just lost them due to repo or didn't like it after they got it and traded so you can find some good ones. Just look at the mileage and be sure to really drive and listen to the engines on the used vehicles tho...But that's what I'd do,and may do since I'm in a similar situation myself, you can trade down to a used one and that way if you are upside down with your payoff they can put it over on something that's less cause it is used....just something to think about....Good Luck!!

YOU WILL CONTINUE TO HAVE DEBTS IF YOU TRADE IN
JUST KEEP YOUR RAV ITS NOT OLD
BE HAPPY WITH WHAT YOU HAVE
ALSO GO TO THOSE PEOPLE YOU PAY IT OFF TO AND THEY SHOULD LOWER YOUR PAYMENTS THEY WILL UNDERSTAND
WHY WOULD ANYONE WANT TO TRADE FOR A SECOND HAND CAR-SOUNDS REDICULOUS TO ME
YOU SHOULD HAVE THOUGHT OF THAT BEFORE

Here is what I would suggest.

Take both vehicles to a dealer, and find the 2 used cars that you like.

Have them work up the figures, and see what trade-in values you would get, and roughly what payments you would be on both used cars.

DO NOT LET THEM RUN YOUR CREDIT, JUST GET GENERAL FIGURES!!!

Then, decide if it is more economical to keep what you have.

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Should I stay with my loan or trade in for a used car?

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