By Hadas Kuznits
PHILADELPHIA (CBS) – Low interest rates are prompting some to refinance their cars — but is this smart?
Adam Soloff, president of Soloff Wealth Management Group, says if you’re considering refinancing your car, there are some factors to take into consideration.
“First and foremost, it’s a matter of looking at the interest rate that you have and the specific terms of your loan on your car,” he said. “Depending on the amount of time remaining on the loan and the amount of interest rate that you have, it may make sense to refinance your car loan. Many folks don’t realize that this is even a possibility.”
But even if you can, should you?
“We’re not advocates, typically, of leveraging depreciating assets in order to obtain additional cash as opposed to using your house with a similar plan of tapping into the equity.”
He says refinancing your car to get lower monthly payments makes sense if you’re in a dire situation, like the loss of a job.