Is it a good idea to refinance an auto loan? If I do, can I still trade in my car at anytime?

It is a good idea if you can get a better rate or if your just trying to lower your payment.


You always have the option to sell whenever you want but in today's market, you might owe more than your car is worth.


To check, the best way is to go to Carmax and have them put a bid on your car. Compare that to what you owe and it will show you if you have negative equity or not.


DO NOT let a local dealer give you the number as they will always be lower. Carmax pays more than dealers or wholesalers for pre-owned cars.
Is it a good idea to refinance an auto loan? If I do, can I still trade in my car at anytime?
yes and no.





If you can save significantly on the interest, then it can be OK.


BUT


Do NOT extend the term! A lot of people refinance their car and then stretch it out to the longest term possible to get a lower payment. When you do that, you end up giving back all of your savings, and then some, because you are paying even LONGER on the car. If you lower your payment by $25, but stretch the term 18 more months, then your savings gets flushed away. PLUS you stay upside down even longer, making it harder to trade out.





So, if you do refinance, don't extend the term. If you only have 30 months to go, then refinance for 30 months. Keep your eye on the big picture too
Is it a good idea to refinance an auto loan? If I do, can I still trade in my car at anytime?
That depends on your situation. There are many factors that go into a good refinance deal, and few can tell you whether its a good idea or not without more details.





Overall, it's always worth a shot. Brokers will run your application for free and tell you what kind of deals you can get.





You can sell your car at any point you'd like. But it'd look kinda weird to have one car loan, then another for like a month and then no car payment.