Refinancing vs. Trading in Your Car

Have you had an unexpected change in your finances recently? If you are having trouble with your car payments, you’re not the only one. Car buyers have fallen off in recent years as many turn to low-cost lease payments instead, but how does that build credit or equity for a permanent vehicle? If you’re a car buyer who wants to keep your car, then there are options for refinancing in some situations. Lenders may help you refinance when they see that the value of your car has dropped significantly or if you request different loan terms. You can wind up paying more on your vehicle, however.

For most car buyers dealing with high car payments, the best option is to trade in the value for one that costs a bit less. This can lower your monthly payment significantly. When you enter a trade-in deal, the dealer buys your car from you, and you’ll select a vehicle in exchange. The value of your car goes towards the payment of the new car. To get a lower payment, you’ll typically pick a car that has a lower price point. However, this only works if you have equity and your car has a higher value.

Want to see what your options are with a trade-in? Kirby Kia of Ventura is known for their deals on new cars, and it’s the best place to take a test drive in Ventura, CA. You can schedule an appointment online.

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