Should I refinance my Honda Accord or trade it in and buy a new one?
"I love my Honda Accord, but when I bought it last year, my interest rate was 10.99%.
Now I've found 7.24% interest rates. Also, the dealership called asking if I want to trade my Accord in for a new one.
Which is the better option?"
Answer provided by
Answered on Jun 17, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“If you already have a car that you love, there’s no sense in trading it in for something you might not like as much.
Because you’re pretty early on in your loan, you might still be upside-down on it (owing more than the car is worth). If you get a new Accord, you’ll have to roll that negative equity from your old loan into the new one, which only adds more debt and interest payments.
A refinance is probably the best option for you. It will save you money on interest, prevent you from taking on unnecessary debt, and, most importantly, let you keep a car you love.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
What should a person do when their insurance company suspects them of fraud after a house fire?
There was a big fire at my sister's house. The insurance company suspects fraud on her part, but my sister insists the fire was an accident. The insurer has given her a $2,200 living allowance and is preparing a lie-detector test for her. Do you have any suggestions for what she should do?
Apr 07, 2021
Are there any lenders that offer car loans for low-income buyers?
I need a car to get to my retail job. I don't make much. Will any lender work with me?
Jun 23, 2021