Ok, I'm in a quandry over what to do. As some may recall, I mentioned from time to time, my wife has been out of work, and unfortuntealy who unemployment status continues Anyways I have a fairly new truck (2008 honda ridgeline) that has a fairly high car payment. Given my financial situation I'm considering to trade it in next week (as the president's day sales are pretty decent around where I live) or refinance the auto loan. I just started looking into this option. Option 1. Trading it: I'll have to pay sales tax and may put up some cash as a down payment. The upside of this, is IF they give me the blue-book value, I'll be ahead of the game. I'm planning on getting a honda civic or a Ford Fusion sedan. If I play my cards right, its quite possible to save about 200 dollars a month Option 2. Refinancing: I'll lower my payments and keep my truck. Downsides are that I may not get a term or interest rate I like and in all likelihood I'll be paying for a vehicle for a very long time. Plus the loan value may eclipse the blue book value, and if I got in an accident, the insurance company may not give me enough money to pay off the loan. I'll be on the hook for that then. Neither option is really enticing, since I'm moving down from a truck to a base line car, I may not get a lot in trade in or wheeling and dealing. The loan option may mean that I'll be paying for the truck for 7 years (2 years already and another 5 for the new loan). Thoughts, opinions and/or suggestions. btw, I thought of selling it privately which I might in the spring, but given my family situation, we cannot be w/o two cars so while I may be able to sell it for more $$, its not a feasible approach but one I may explore this spring.