Refinancing vs. Trading in Your Vehicle

Is your monthly car payment too high? It could be getting in the way of your savings or paying other bills. When you struggle to pay your car off, it’s a good time to consider options. Trading in your vehicle offers a lower monthly payment, and most dealers are willing to work with car buyers who want to trade in and get a vehicle that suits their budget. The dealer will most likely pay off your loan, but you’ll need equity in your current vehicle to put towards a new car.

Knowing the value of your current vehicle is important. If your car has a high trade-in value, you can likely get a similar or newer car with a lower monthly payment. Is this a better option than refinancing? When you refinance a vehicle, your lender looks at your credit and determines if your payments can be lowered by changing the interest rate. In some cases, they also change the loan terms to extend the contract, however.

If you want to get the best deal on refinancing or trading in your vehicle, then you should stop by Pitre Kia to see all of the options available. You could get the best deal on a vehicle just by talking to their friendly customer service team.



Categories: Finance