Should You Refinance Or Trade In Your Car?

We here at Gillman Honda Houston want you to be informed about the pros and cons of refinancing versus trading in your car.

The biggest benefit to refinancing your existing car is that it will lower your monthly payments by extending the term of the loan. This helps clear up cash flow issues and allows you to have more money in your pocket. The biggest down side to this is that, in the long run, you will end up paying more for the car in the form of more interest payments. The most positive thing about trading in your car is that every dollar you get for it, assuming the car is paid off, can be put directly towards a new one.

The biggest downfall comes if you haven't paid off the car. This is because any money from a trade in must be used to either fully or partially pay off the remaining balance on the car loan.



Categories: Finance