Should you trade or refinance your vehicle? If so, when? The better question to ask is 'why.' It's the 'why' that best determines when it's a good idea to refinance or trade-in your vehicle.
Feel free to trade in your vehicle if you're trying to get rid of it and count its trade-in value against the cost of your next vehicle. You can leverage trade-in value when purchasing a brand-new vehicle or another used vehicle. Generally, trade-in values come directly from KBB or NADA. Dealers look at a few other factors as well:
- Vehicle condition
- Make, model, year
- Vehicle demand/popularity
Refinance your truck when you want to lock in a lower interest rate, better loan terms, a more competitive APR, or lower general monthly car payments. Lenders like to see at least six months to one year of on-time payments before you refinance. However, if your credit improves during the tenure of your vehicle ownership, we recommend refinancing.
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