You’ve probably been wondering how long you have to wait before you can trade-in your car that’s still under financing. You might be hoping to upgrade to a newer car sooner rather than later. But is this possible? And if so, what are the implications? This blog post answers all your trade-in car queries. Read on to learn more!
Can You Trade in a Financed Car? The Short Answer
The quick answer is yes; you can trade-in your financed car. However, there are a few things that you need to take into account before doing so. This includes your remaining amount and your vehicle’s trade-in value.
When Can You Trade in Your Car?
You can trade-in your car at any point during the finance agreement. However, it is worth noting that you might not get the same amount of money for your car if you trade it in early on. This is because the car value depreciates since you first bought it.
If you want to trade-in your car before the end of the finance agreement, you will need to pay off the remaining balance first. You can do this by taking out a new loan, using savings, or paying it off.
Once you clear the remaining balance, you can trade your car like-for-like. This means that you can only trade-in your vehicle for another vehicle and not for cash.
The Advantages and Disadvantages of Trading in Your Car
There are a few advantages and disadvantages of trading in your car early. These include:
Advantages:
- You can get a new car sooner than if you waited until the end of the finance agreement
- You might get better deals on your new vehicle if you trade in your old one
Disadvantages:
- You might not get as much money for your old car as if you sold it privately.
- You’re required to pay an early settlement fee to the finance company
- You might be charged interest on the remaining balance of your old car loan
How to Trade in Your Car Early
When you want to trade in your car early, there are a few things you need to do. First, you need to find out your car’s trade-in value.
Once you know what your car is worth, you need to find a dealer willing to take it in as part exchange. Not all dealers will accept cars on finance, so it’s worth doing your research to find one that does.
When you’ve found a dealer, you need to negotiate a reasonable price for your new car. Be sure to factor in the value of your old car when negotiating to avoid paying more than you need to.
Ready to trade in your financed car? Our team at Acura of Tempe, serving Tempe, AZ, is here to help make the process as smooth and easy as possible for you. We want to ensure that you get the best value for your car, so we offer thorough inspections and evaluations to give you an accurate estimate of its worth. Please schedule an appointment today, and let us help you through every step of the process!
Connect with us
