When you are in a situation where you are having difficulty making your car payment, you have some options. The difficulty comes in deciding what to do. Is it better to refinance a vehicle or trade it in on a different one? The answer depends on the car and on your situation.

If you have a high interest rate on your current car loan, you may want to refinance if your finances are such that you can get a better rate. If you can't get any substantial payment relief from refinancing, you should consider a trade in. If your vehicle is very old, your bank may not allow you to refinance the vehicle.

Trading in your vehicle on a car that will allow you to have lower payments often makes a lot of sense. Even if your car has a lot of miles on it, you will get something for it when you trade it in.



Categories: Finance