Refinancing vs. trading in your car

Have you ever refinanced your car? There are a lot of steps into getting a lower interest rate. The first thing that you want to check is that you have positive equity in your vehicle. This means that your car is worth more than you owe. This is the best situation to be in with a refinance or a trade-in because it means that you’ll get more value for the car. This can apply to getting into a new vehicle or hopefully it could mean to lowering your interest rate in order for you to pay it off sooner.

However, no one gets that lucky. It’s likely that you’ll need to refinance if you run into trouble making payments on your vehicle. You will need a positive equity standing to get into a good car. Otherwise, if you have negative equity in your current vehicle, it’s likely that you won’t be able to get rid of it.

Want to get more information? Talk to the people at Piazza Honda of Reading for more information.

 

 

Categories: Finance