I financed a car this past summer (5 year term at something like 5.9% - not the best), but with the recent economy troubles, cars are being offered at much better financing deals. Plus, I've quit regular "full time" work and started doing freelancing - contract work. This opens up the opportunity for writing off a leased vehicle during taxes.
So, I've been thinking about whether or not I can make things a bit better for myself:
1. Take out a loan from a bank at a lower interest rate than what Honda gave me, and use that to pay off the car.
- At the time I financed the car, Honda had the best interest rate for me, but with the economic changes, perhaps I can get a better deal at some bank? Thoughts?
2. Negotiate with my Honda dealer to trade in this car (at a major loss, that's for sure) for a leased vehicle.
- May be a better deal long term.
What do you guys think?