<prompt> Human: So here is my dilemma. I dont have anybody in my family that I can go to for these types of questions so I am relying on you Reddit. Two years ago I financed a 2011 Ford Fiesta w 20,000 miles for 14,000 16.640 APR. I didnt know what I was doing, and my stepdad who cosigned the loan obviously didnt know what he was doing either, because after doing research I realized I basically paid 22,000 for a vehicle worth around 10,000. Now, the car is having steering issues and the dealership is refusing to cover it. It will probably be 1k in repairs, but the car is still driveable right now. So I am wondering if it is better to repair the vehicle and keep it and pay it off, or should I try to refinance a new vehicle? I still owe 10,000 on the car and the trade in value is probably worth around 4,000.My yearly income is pre-tax 43k, but can go up or down because its based on incentive. I have 4,500 in savings and still live with my parents but I am planning on moving into an apartment in Pittsburgh with my girlfriend in May.  <response>: Trading in a car you have negative equity with almost never makes sense. Do not do it. See if you qualify to refinance it. You might need to put some money down if your negative equity is as high as you indicate to meet the loan to value ratio to refinance. 16.64 is incredibly high and you might have some luck refinancing if your credit is not too bad and if you have some money to get your loan to value ratio in the 100-120 range. 