At Earthycars, we always want to make sure that our clients and the community are well-informed when it comes to financing or trading in a vehicle. Whether your loan is paid off or not, it is important to know the difference between refinancing and a trade-in.
If you want to refinance a car, it is usually because you still have a loan and you want lower payments. Refinancing will usually extend the length of the loan, but in the end, you will have a lower payment, and most times, a lower interest rate.
Trading in your vehicle while you have a loan isn't as great as trading it in when it is paid off. If you want to trade in your vehicle for a newer vehicle or an upgraded model, then the trade-in value typically goes toward the down payment for the new vehicle.
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