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Can You Trade A Car You Re Financing

By Teletalk Desk

Many people now finance their car purchases with dealer or third-party financing. But what happens if you want to upgrade to a different vehicle before the loan is paid off? Can you trade in a car you're financing? The answer is yes, but it's important to understand the details of this process before making any decisions.

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5. Can You Trade In a Financed Car? | Auffenberg Dealer Group

https://www.auffenberg.com/trade-in-financed-car/
Can You Trade In a Financed Car? | Auffenberg Dealer GroupCan you trade in a financed car? The answer is yes, absolutely! However, you should know that trading in a financed car doesn't make the loan go away: ...

What happens when I trade in a financed car?

When trading in a vehicle that still has an outstanding auto loan balance, the negative equity will usually be rolled over into your new loan. This means that any amount owed on the old loan will be added to your new loan balance, potentially increasing the total amount of money you owe and therefore increasing your monthly payments.

Can I get cash for my trade-in?

It depends on how much equity you have in the vehicle and whether or not you are able to cover any remaining debt after trading in. If there is a remaining balance left on the loan, the dealership may offer you cash to cover it or they may roll it over into your new auto loan.

Is trading in a financed car worth it?

It really depends on your individual situation. If you think upgrading to another car will benefit you more than paying off the existing loan, then trading-in can make sense - just make sure not to take on too much more debt as this could put you at risk of defaulting on your payments down the line.

Are there any additional fees for trading in a financed car?

Yes, most dealerships will charge any applicable taxes and fees associated with transferring ownership, plus potential transaction fees for rolling over remaining debt from one loan to another. So make sure to ask about these charges ahead of time so that there are no surprises later on.

Conclusion:
Trading in a financed car can be beneficial provided that all terms and conditions are understood before making a decision. Do some research beforehand and consult with your lender or dealer to ensure that this option is right for you and your budget.

Teletalk Desk

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