How to Trade in a Car

Have you been considering learning how to trade in a car that is not paid off? Depending on your financial situation, this can be a simple process for drivers. If you’ve never researched how to trade in a car that’s still under finance, the experts in Milledgeville compiled a guide just for you. Keep reading to learn how to trade in your car if it’s not paid off.

Can You Trade In a Financed Car?

Learning how to trade in a car that’s not fully paid off is not as difficult as you think. It’s important to understand the specifics of your loan and the steps to take to finalize the purchase of your new vehicle. Trading in a vehicle that’s still being financed means that the remaining balance left on your current loan will be settled by the dealership where you’re purchasing the new vehicle from. Any remaining value left on the vehicle goes toward the cost of your new car.

How Soon Can You Trade In a Financed Car?

and drivers often inquire what the timeline is for trading in a vehicle that’s not paid off. Several factors influence this scenario – including the balance owed, the rate of depreciation, and your individual financial situation. The following list contains potential scenarios:

• Some drivers trade their used cars as soon as they want something new. Others, however, opt to wait until they pay the loan down.
• Trading in earlier is beneficial only if you have positive equity – meaning the value of the car is higher than the loan balance.
• If you choose to trade the vehicle in too soon, you can put yourself in a negative equity situation. This means the loan balance is higher than the value of the new car.

To inquire about your equity, compile your loan documents and find out exactly what you owe on your car. Use Kelley Blue Book® to get an accurate quote for the value of your car so you know what to expect as far as potential trade-in offers go. Assuming you’re in a positive equity situation, you can save yourself from adding additional debt.

Learn More About the Trade-in Process with Five Star Automotive Group

Trading a vehicle that you have a loan on is always a potential option – assuming you’re in the right financial position. Remember, negative equity doesn’t disqualify you from moving forward with the trade. In certain scenarios, dealing with the negative equity can be the right move, especially if it gets you out of an undesirable loan situation. For more information, our finance department is standing by. Don’t hesitate to contact our team today.