How to Decide Between Refinancing a Loan or Trading a Vehicle

If you are looking to save money on your car payment, you could choose to trade your current vehicle in for a less expensive model. Alternatively, you could work to refinance your loan to lower your interest rate or extend the term to lower the monthly payment.

At Garcia Honda Albuquerque, we want you to know as much as possible about both of these options. Refinancing your loan to one with a lower interest rate is generally only possible if you have good credit. Market conditions may also play a role in whether refinancing is a viable option.

A trade can be ideal for those who have sufficient equity in their current vehicles. It allows you to use that equity as a down payment on your next vehicle. Doing so can reduce your monthly transportation payment while upgrading to a new car or truck at the same time.

 

 

Categories: Finance