Trade-In versus Refinancing: What is Right for Me? 
 Buyers sometimes wonder if they should refinance their current vehicle or trade it in for a different one, especially if your financial circumstances have changed and your payments are stretching you thin. There's no correct answer in this situation, however, here are some points that you should consider.


If you like your current vehicle and your credit score has improved since you bought your vehicle, you could benefit from refinancing your vehicle if you can get a lower rate. You're not locked into your loan term and can refinance at any time. The best reason to refinance the loan is you will pay less interest.


Trading in your vehicle may be better if you have "too much car" for your situation. If that's the case, trading it in for a more sensible vehicle is the answer. You should also trade in your car if it needs too many repairs.