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
“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.”
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Eric Schad
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.
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