Which is Better: Refinancing vs. Trading in Your Car?

The entire team at Blue Knob Auto Sales want our customers to make an informed vehicle purchase. Consider the differences between trading in a car or simply refinancing.

With refinancing, you will get much lower payments because your rate will be lower, but there is one downside to consider. If your vehicle is very old, very poor condition, or has a low resale value, it isn't worth any money and you are basically taking out a new loan.

When you trade-in a vehicle, you are going to get a lower rate and save money on your payments too. The drawback, however, is that you will be paying more in the end if you are currently upside-down in that loan. When you owe a ton on that car, all those future payments have to be rolled into your new loan.

If you are considering financing your vehicle through Blue Knob Auto Sales, call us today for assistance.

 

 

Categories: Finance