Can I trade a car in that is financed?
First time buying a car by myself. Looking
to get a better car but I'm still making
payments on the current car I have. Is it
possible to trade it in and get another car?
4 Answers
Yes you can. The dealership will just subtract payoff from trade in value, but the trade in value has to be larger than the payoff of the loan.
mikeatpriestlake answered 9 years ago
yep, but remember, you will still have to pay the balance of the loan on the old car, they will just add it to your new loan.
You 'can' pretty much trade in anything... just be careful on your balance... do a little homework first and get your pay off from the bank and then go online and see what the fair market value is on your car... hopefully you bought it right and have been paying on it long enough where you have some equity in it and that can be used as a down stroke or even get cash back depending on your credit, but on the flip side, if you are in a negative stance, as stated above, the dealership can add it to your new loan, but you'll just go further upside down, not to mention you won't get a preferred rate because the bank doesn't want to do a 12k loan on a 10k car and then not have a good asset securing the loan...
Yes you can, the dealer has to call your current finance company and ask for the pay off amount and they have a certain amount of time to pay off your current loan. But be careful majority of times there will be a left over balance that you will have to pay out of pocket. if you are upside down on the car you have to make sure the dealer is going to pay off the whole balance that you owe,