When you trade in a car with a loan,the dealer takes over the loan and pays it off. The dealer is also supposed to handle the paperwork, such as the transfer of the title, which establishes legal ownership of the vehicle. To trade in a car that鈥檚 not paid off, bring the following items to the dealership:
People also ask
Can you trade in a car with a loan?
A car with a loan is an automobile that you’re still paying off in installments. You can trade in almost any car for a new set of wheels, including a car with a loan. A car with a loan is an automobile that you’re still paying off in installments.
How do I trade in my car?
The first step in trading in your vehicle is to figure out how much your car is worth. Knowing the value of your vehicle will help you to negotiate and can help you choose your new car with a budget in mind. Tools available on Kelley Blue Book or Edmunds can help you calculate your car鈥檚 worth.
What are the risks of trading in a car with a loan?
There are some risks associated with trading a car with a loan. Considering the risks can help you decide if trading in your car is the right decision right now: Taking out another car loan could stretch your budget. Getting into more debt could put you into negative equity. The Federal Trade Commission explains negative equity in this article.
What happens if you owe a car with a trade-in value?
Say you owe $10,000 on a car with a trade-in value of $9,000. Instead of being on the hook for the whole $10,000, the trade-in credit will cover most of the loan and you鈥檒l pay the dealer the $1,000 difference. Beware: the dealer will often happily suggest rolling the negative equity into the loan for your next car.