Refinancing vs Trading in Your Car

If you have a repossession looming, you can avoid this by talking to your loan company. While your lender may not like the idea of refinancing, it's the best option of keeping you in the vehicle and maintaining the loan. However, this depends on your credit score and a number of other factors. If you are able to get refinancing, it will result in the lowering of your interest rate but also the lengthening of the car's contract.

Some car owners may want to avoid that altogether by looking at a trade-in, which is generally a better deal if you don't want to keep the other car. You can trade-in for a lower cost vehicle and get out of the high car loan payments through trading in. In this case, the dealership or finance company will buy back the car that you owe on and you can pick out a lower cost vehicle that is within your equity range.

See all of your options at Page Honda Bloomfield.

 

 

Categories: Finance