The first is that your loan will not disappear once you trade in your vehicle — regardless of how much money you owe.
When the amount you owe on the car is less than the trade-in value, the process is pretty straightforward.
Say you still owe $5,000 on a car, and a dealer offers you $6,000 for it as a trade-in.
How soon can you trade in a financed car?
How long you should wait to trade in your vehicle ultimately depends on your current loan. There’s no specific time frame you need to follow, but the general rule of thumb is to wait until your car has equity before you go to trade it in.
Will a dealership buy my car if I still owe?
Trading in a Car You Still Owe On
One option is trading in your old car during the process of buying your next vehicle at a dealership. It’s convenient, because the dealer can pay off the loan balance if you still owe, and, in an ideal scenario, it also reduces the purchase price of the vehicle you’re buying.
How can I get out of a financed car?
How to get out of your car loan
- Figure out your car’s current market value.
- Sell your car.
- Transfer your car loan.
- Refinance your car loan.
- Voluntarily give your car to your lender.
- Talk to your lender.