Refinancing vs. Trading in Your Vehicle

Have your finances changed after purchasing a car? You could reduce your loan through refinancing, or you could also reduce your monthly payments by trading in your car. Keeping up with car payments can be difficult, but rather than doing a voluntary repossession, you can trade in your car and purchase a less expensive vehicle. You’ll need to calculate the value of the vehicle before you decide to trade in or refinance.

So how do you determine the value? When you trade in your vehicle, you’ll probably have some equity. This means that your car is worth more than the loan on it, so you can trade in for a low-cost car to lower your payments. Refinancing could also bring down your monthly payments, but it may not be as much as trading in your vehicle.

For more options to lower your costs, why not stop by Honda of Serramonte and talk to a friendly associate about what you can do with your car? You can get a great price on a vehicle today.

 

 

Categories: New Inventory