Refinancing Your Vehicle vs. Trading in Your Car

Purchasing a new vehicle is a big investment. Next to purchasing a house, this is probably one of the biggest investments you are ever going to make. If you currently have a vehicle that you are paying off, you might be faced with the option of refinancing your current loan. If you were also thinking about purchasing something completely different, this might be an option on the table. One of these decisions is likely a more affordable option.

When you trade in your vehicle, you likely have equity that you can use towards your new purchase. If you haven't been paying for your vehicle very long, not a lot of equity might be in place. Refinancing might be a better option until you can build up some more equity. In a couple more years, trading your vehicle in would work out better.

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