How to Trade in a Car That’s Not Paid Off
Looking to trade in your current car around Anderson? What if the car is financed but you haven’t yet paid off the loan? Trading in a financed car is possible, but it is important to understand how the process works. If you are wondering how to trade in a car that’s not paid off, this guide from Victory Honda of Muncie can help.
How Does Trading In a Financed Car Work?
At Victory Honda of Muncie near Fishers, we can guide you through the process of trading in a car that is not paid off. Let’s get started! Here’s what to do:
- See how much is still left on your loan balance. If you do not know the amount off-hand, you should be able to find it on your last statement.
- See how much your current car is worth. Try our trade-in tool. Keep in mind that the amount you see is just an estimate. We will not be able to finalize the offer until the vehicle has been inspected in person.
- If your vehicle is worth more than the amount that remains on your loan, you will have money leftover that you can put toward the next vehicle of your choice. You can also keep that money in your pocket.
- Example: if you still owe $11,000 on your car, but you are given an offer of $12,000 by the dealership to buy your car, that $1,000 difference can go toward the cost of the next vehicle you purchase.
- What if the amount you owe on the loan is more than the offer you receive? If this is the case, it is called negative equity and you still owe on your previous vehicle. You have two options in this case. You have the opportunity to pay off the loan in full before you buy another car, or the balance can be rolled over into your next loan.
Rolling Over a Loan
If you still owe on your previous loan, the dealership may say they will pay off the old loan. However, this is too good to be true. Trading in a car with negative equity does not eliminate your responsibility to pay back the old loan. Rolling over a loan means that you pay the dealership back for the old loan at the same time that you pay off the loan on your new vehicle.
Contact Victory Honda of Muncie for More Information
If you still have questions about how to trade in a car that’s not paid off, the team at Victory Honda of Muncie near Carmel would be more than happy to provide you with information you need. Contact us today.
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