Refinancing vs. trading in your car

Our team here at Northtown Honda located right in Amherst wants to make sure that you make the most informed decision possible when deciding whether or not to purchase a new car. That is why we decided we want to tell you all about the pros and cons of trading in your car versus refinancing.

The biggest benefit of trading in your existing car is that you are often given cash which can then be applied to a new car. The biggest negative to this is if you still have payments to make on the car, some of this cash will have to be used to finish paying the loan. The biggest benefit to refinancing an existing car loan is lower monthly payments. The biggest down side to this is that you will be paying for the car over a longer period of time which increases the amount of interest you will pay.

 

 

Categories: Finance