Refinancing vs. Trading in Your Car

The age-old question for the automobile industry is whether to trade in or refinance your car. That is why our team of automotive experts here at Kempthorn Mercedes-Benz want to make sure you know what scenarios are best for refinancing and which are best for trading in.

First, refinancing a car makes the most sense when you are planning to drive the car for many more years. Typically, only cars with very low mileage a refinanced. Refinancing may actually save you a lot of money if your credit rating has drastically improved since the time the car was first financed.

Next, we look at trading in. This is typically done when you know you want to purchase a new car but want to receive the residual value of your old vehicle. Additionally, it may make sense to trade in your car if you find that you can no longer afford the monthly payment. The key is to find what works for your specific situation.



Categories: Finance