When Is It A Good Idea To Trade In Vs. Refinance Your Existing Car?

Being an informed car buyer saves consumers thousands of dollars every single year. That is why we here at Piazza Honda of Philadelphia want to be sure you know you're making the right choice when deciding whether to refinance or trade in your existing car.

Refinancing your car makes sense when you are still planning to drive your car for many more years but want to have a lower monthly payment. Although you will pay more in interest in the long term, your short-term payments will be much lower. Trading in your car makes the most sense when you are looking for a new car and you have fully paid off any existing car loans. This allows you to put every dollar of trade in value towards a new car and lower the total purchase price. If you have a loan, the trade in value will be less because some of it will have to go towards closing out the existing loan.



Categories: Finance