If you’re looking to trade in your car but you still have an outstanding loan on it you may be wondering if it’s even possible. The answer is yes you can trade in a car with a loan but there are a few things to keep in mind before doing so.
For starters you’ll need to find out the payoff amount of your loan. This can be done by contacting your lender or checking online. Once you have this information you can start shopping for a new car. When you find one you like the dealer will likely run a credit check to see if you’re eligible for financing.
If you are they’ll then work out a deal that includes your trade-in. Keep in mind the dealer will likely only give you the wholesale value for your car not the retail value. So if you owe more money on your loan than what the car is worth you’ll need to bring money to the table to cover the difference.
Another option is to sell your car privately and use the proceeds to pay off your loan. This may net you more money than trading it in but it’s also more work. You’ll need to find a buyer negotiate a price and then handle all the paperwork yourself.
Regardless of which route you choose trading in or selling a car with an outstanding loan is possible. Just be sure to do your research ahead of time so you know what to expect.
Can I trade in my car if I’m financing it?
It depends on the dealership and your lender.
You’ll need to pay off the loan before trading in the car.
How much do I need for a down payment on a car?
It depends on the car you’re purchasing and the dealership you’re using.
The average down payment is 20%.
How often do I need to service my car?
Service intervals vary by manufacturer but are typically every 5000 to 7500 miles.
What is the average price of a used car?
The average price of a used car is $19589.
How much is the average car payment?
The average car payment is $523.
How much should I save for a used car?
You should save as much as you can afford for a down payment and to cover unexpected repairs.
How much does it cost to insure a car?
The average cost to insure a car is $1548.
How often should I change my car’s oil?
You should change your car’s oil every 5000 to 7500 miles.
How often do I need to rotate my car’s tires?
You should rotate your car’s tires every 5000 to 7500 miles.
What is the difference between all-season and winter tires?
All-season tires are designed to perform well in a variety of conditions while winter tires are specifically designed for traction and grip in cold weather and on snowy or icy roads.
What should I do if I get a flat tire?
If you have a spare tire you can change the flat tire yourself.
If you don’t have a spare you’ll need to call a tow truck.
What is the difference between gas and diesel?
Gasoline powers most passenger cars and light trucks while diesel powers most commercial trucks and some passenger cars.
What is the difference between regular and premium gas?
Premium gas has a higher octane level and is less likely to cause engine knock.
What is the difference between a manual and automatic transmission?
A manual transmission requires the driver to shift gears while an automatic transmission does it automatically.
What is the difference between front-wheel drive and rear-wheel drive?
Front-wheel drive cars have the engine and transmission mounted in the front while rear-wheel drive cars have them in the back.