Should You Trade in Your Car or Refinance?

At Land Rover Farmington Hills, we like to make sure the residents in Farmington Hills, MI make educated decisions about their vehicles and finances. Refinancing a vehicle is obtaining a new loan that gives you lower monthly payments and extends the time you pay for your vehicle. If you choose to trade your car for a lower priced vehicle, you may get your payments lowered this way as well.

Refinancing a car is a commitment most people make when they have an improved credit score and a newer vehicle. You should make sure that your vehicle will last the length of the loan, before making the choice to refinance.

Using your vehicle as a trade-in is a clever idea if the trade-in value of your vehicle is higher than the balance on your loan. If you don't have a loan, your trade-in can act as a down payment for a newer vehicle. Your down payment will determine the payments and length of your loan.

Categories: Social