Should I Refinance or Trade In My Car?

Refinancing or trade-in are the most popular options available to car owners who want to change their current car loan duration, monthly payments, interest rates, or the car.

The urge to enter a new agreement for a car loan most times comes from individuals who are not very happy with their current car financing interest rate and payments or they don’t like the car.

Here’s how you can tell which option suits you best.

Trade In

A trade-in, different from refinancing, is a process that entails switching your current vehicle for one that better fits your lifestyle. A lot of people who are looking for a new vehicle will often try to sell their car organically online or through friends or family members, but trading in a vehicle is a common occurrence that dealerships are often always happy to do, as it creates more used inventory for them. Car dealerships handle the details of a trade-in, which can make it one of the easiest ways to get rid of your old car and driving in a new one.

Whenever you trade-in a vehicle that isn’t fully paid off, keep in mind the amount remaining on the loan will be added to the next loan. With this in mind, the key then, to getting the best deal on a trade-in is to get the newer loan at the lowest possible interest rate so any payments outstanding will be made at a low interest rate.

Visit www.canadauto.ca or call 1-855-550-5565 today to see exactly how much of a trade-in value you can get for your current vehicle!

Refinance

Refinancing a vehicle means replacing your current car loan for one with different terms. With refinancing, you keep the car but apply for a new loan agreement that has rates more suitable to your financial situation. A secured loan that is typically applied for through a new lender, refinancing is usually done by people who are looking to lower their monthly payments, change interest rates or adjust their current term length. Another popular reason why Canadians might choose to refinance is to remove a cosigner from their loan contract. It’s common for a borrower to apply for a refinance loan to save money, but that’s not the only reason why a person might decide to refinance. If you’re approved for refinancing with a new lender, your term duration, monthly payments and interest rates will be different.

If a person is applying for refinancing, there’s a good chance they’re hoping to either extend or shorten their current loan duration. Extending a loan length can lower monthly payments and interest rates, as an extended loan adds more months to the overall agreement and stretches out the cost of debt. Some people, however, apply for refinancing with shorter loan duration. Regardless the loan duration you’re looking for when refinancing, choosing what is convenient for you will only benefit your finances down the road.

Call Canada Auto Experts at 1-855-550-5565 today to see how you can refinance your vehicle or visit www.canadauto.ca.