Questions-Answers about trading

How does trade in car work for financed car

Trade

Is it a good idea to trade in a financed car?

When it’s a good idea to trade-in a financed vehicle

In addition to your loan payments, your current vehicle is costing you additional money you didn’t account for. This often happens if your vehicle is a gas guzzler, requires speciality parts or additional maintenance.

What happens when you trade a car you still owe money on?

If your auto loan payoff amount is more than the dealer is willing to give you for your trade-in then you will still have to pay off what you owe on your old vehicle even if you trade it in.

Can I trade in a car that hasn’t been paid off?

Because there’s a lien against your car until it’s paid off, it’s very difficult to sell it privately unless you can pay off the balance on your own. But trading in a car with negative equity is very simple for a dealership, within reason.

Can you trade in a car at Carmax if you still owe?

You can sell your car to anybody even if you still owe money. CARMAX will contact your bank for the payoff amount and deduct that from whatever they offer you for your car. So, if they offer you $15,000 and the outstanding loan amount is $10,000, you will get $5,000.

Why you should not trade in your car?

Business school researchers say you’ll pay more for your new car. But selling it yourself can be a hassle – and even dangerous. … And used cars obtained on trade-ins carry a very high profit margin for dealers when they put them on their used car lot or sell them wholesale.5 мая 2015 г.

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What is the best mileage to trade in a car?

Best mileage level for a trade-in

But according to Edmunds data, there is no major drop-off at any certain milestone. Even the 100,000-mile mark is not a value-killer as long as the car is in good shape. The truth is, there is no magic number.

Can I trade in my expensive car for a cheaper one?

If you ever find yourself in a situation where you can no longer afford your car payments, it’s possible to trade in a car with a loan for a cheaper car. Be prepared to contact your lender, clearly explain your situation, and have a budget set up with a dollar figure that you can afford to pay monthly.

How do you get out from under a car?

You can get out from under a payment you can no longer afford.

  1. Refinance if Possible. Often times you will be unable to refinance a car loan when you are underwater but it will depend on the lender. …
  2. Move the Excess Car Debt to a Credit Line. …
  3. Sell Some Stuff. …
  4. Get a Part-Time Job.

How can you get out of a car loan?

  1. 6 ways to get out of a bad car loan. Before you decide how you should get out of a bad car loan, you should decide exactly what you hope to accomplish by doing so. …
  2. Refinance a car loan. …
  3. Renegotiate a car loan. …
  4. Pay off a car loan. …
  5. Trade in a car to get rid of a bad loan. …
  6. Surrender the car to the lender. …
  7. File for bankruptcy.

Can you turn a car back to the dealership?

You can voluntarily surrender the vehicle to your lender or dealership on your own. … Your lender may ask you to drop the vehicle off at an agreed time and place, or they may send someone to repossess the vehicle from you. After repossession, the lender will sell the vehicle and send you a statement of realization.

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Will a car dealer settle my finance?

Will a car dealership settle my finance? Another short answer: yes. This is a popular process for people looking to upgrade or change their car before paying off the total outstanding finance.

Should I pay off car before trade in?

If you have the money, it is a good idea to pay off the difference between what you owe your lender and the value of your old car before you finance a new vehicle. This way, you don’t have to pay interest on the negative equity that would be rolled over into the new loan.

Does CarMax take cars that don’t run?

CarMax will purchase that non running vehicle, but don’t expect a large sum of money. Chances are that your non running car will be sold in an auction. With their extensive appraisal process, you can count on making some money from the sale of that car. But don’t expect a huge payout.

Does CarMax give a fair price?

CarMax basically has two tiers of vehicles: stuff CarMax will sell, and stuff CarMax won’t sell. What they will sell are newer cars in good condition with low miles. If you bring them something like that, they’ll make you a very fair offer, and you’ll walk out happy.

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