Should You Refinance Your Car Or Trade It In?

Our team of vehicle experts at Matt Burne Honda wants to be sure that you're informed of the benefits and negatives of refinancing versus trading in your existing car.

First, the biggest negative to refinancing your car is that you will pay more interest on it over time. This is because the term of the loan usually gets extended. The biggest benefit to this is that your monthly payment goes down so you can spend more of your hard earned money elsewhere. The biggest negative to trading your car in is if you still have not paid off that car loan. This is because the funds you receive from the trade in must be put towards this loan until it is fully paid off.

The biggest benefit to trading in your car comes if the loan is already repaid in full. This is because every dollar can be put toward the cost of the new vehicle.

 

 

Categories: Finance