When should you refinance your car, and when should you consider it a trade-in? Doing one or the other could greatly enhance and enrich your vehicle ownership situation and your credit. How? Our Fife, WA Land Rover of Tacoma team members have your quick, simple answers.
When you're vehicle is a done deal, and you're ready for another vehicle (used or new), count your current vehicle's value as a trade-in allowance. Trade-in isn't the same as Actual Cash Value, which is the cost of replacement minus depreciation. Trade-in is more like a dealer's store credit. It reflects your vehicle's overall condition, desirability to new owners, make and model. It often corresponds to values listed in KBB and NADA.
Why Should You Refinance Your VehicleIf you intend to retain ownership of your vehicle, and you merely want to pay less interest, get the refinancing ball rolling. Refinancing is an especially good way to capitalize on your improving credit profile. The better your credit, the lower your car payment interest rates, potentially saving you thousands of dollars monthly.