Can You Trade in a Car With Loan?
You financed your car, but you are ready to trade. You have an outstanding balance on your loan. Can you trade in a car with a loan? Is that allowed? Yes, it is quite common for people to trade a financed car for another. Here’s what you need to know to trade in a car that’s not’s paid off.
Trading in a Car You Owe Money On Starts with Its Trade In Value
The first thing you want to know is: does your car have a positive trade in value? When your car is worth more than the loan, that’s a positive trade in value. That’s the position that you want to be in, especially if you are on a tight budget.
To figure out if you have positive equity, you should get a trade in valuation on your car. You can do that on our website in a fast and efficient manner. This is a proposed trade in amount that you can use as a baseline. We use Kelley Blue Book valuations at Earnhardt Auto Center. There are other ways to value your vehicle, but we have found that Kelley Blue Book is the most accurate and reliable.
You need to compare the amount you owe to the trade in value. Are you ahead? If so, you should be able to get a down payment for your next purchase. You are invited to use our simple and helpful trade-in tool.
Deciding Where to Trade in a Car with a Loan
Next you need to decide where you will trade in your car. We recommend that you find an established new car dealership that puts an emphasis on used cars as well. That’s Earnhardt Auto Centers. Our new car dealerships are busy with trade-ins every day. They also sell used cars, and our online website focuses primarily on used cars.
Whether you are buying, selling or trading, Earnhardt Auto Centers is your one-stop destination. Using online tools, you can feel good about the proposed price, and you will have the knowledge you need to make the right decision when it comes to the final trade. You probably qualify for financing. Check out our simple, no-strings loan pre-approval tool.
When Trading a Financed Car, What Happens to the Loan
If your loan has positive equity, the loan on your new car will pay it off. That’s part of the down payment process. If your loan has negative equity, the deficit should be consolidated into a new loan. A single loan ensures you will manage your payments better.
Those who aren’t sure about this should seek help from our qualified loan advisors. Earnhardt Auto Centers has helped many people with loans who want to trade for a new or used car. We are happy to help you.
Please use our trade-in valuation tool, chat with our online staff or utilize our online financing tool. There are so many ways to get started, and we look forward to helping you find your next ride.