What You Need to Know About Trading a Car You Are Still Financing?
Summary
Have you recently purchased a new vehicle and are no longer feeling it is a good fit? Or have you been driving a car for a few years and are looking into a new one? If so, you might be curious about the process of selling or trading in a car you are still financing. If you’ve ever wondered, can I trade in my financed car, the answer is, absolutely you can. However, there are a few factors you’ll want to consider before making a snap decision.
At Ontario Chrysler, we are the Dodge, Chrysler, Jeep and Ram dealership Toronto residents turn to when looking for the best selection of both new and used vehicles for sale. We know that there are many reasons why someone may want to trade in a vehicle that they are currently financing or haven’t owned for long. In this post, we explore some of the most commonly asked questions regarding trade-ins and financing. Contact a member of our team and use our online trade-in appraisal to learn more about how you can drive a vehicle that better suits your needs.
Can I Trade in My Financed Car?
If you are still making payments towards your vehicle but are looking to make a change and buy a new one, you might wonder, can I trade in my financed car? You absolutely can trade in a vehicle that you are financing, and if you have positive equity in the vehicle, this can be advantageous. However, you’ll need to be a bit more cautious about your decision if you owe more on the vehicle than your trade-in is worth.
What Happens If I Owe More on My Vehicle Than I Can Sell it For?
If your car loan is underwater, meaning that you owe more on it than you can sell or trade it in for, you are still able to trade it in. However, what you owe on the vehicle, minus its trade-in value, will generally be rolled into the cost of the new vehicle you wish to purchase. In some cases, this can still be a smart move, though rolling an outstanding balance of your trade-in into the cost of your new vehicle could become quite costly.
Can I Trade in My Financed Car After 1 Year?
Trading in a financed car after one year is possible, but unless you have made a substantial down payment towards the vehicle, it could be quite costly. If you are looking to trade in a one-year-old vehicle for a cheaper vehicle, this could be a good decision, though looking into refinancing options might be more appropriate. Talk to your trusted dealership about refinancing car loans to see if refinancing would be a better option for you than trading in a one-year-old financed car.
Can I Trade in My Financed Car to Another Dealer?
It is possible to trade in a financed car to another dealer. If you are looking into a different vehicle manufacturer or simply want a different buying experience, you can trade in to a dealer other than the one you originally purchased from.
Do You Service Chrysler, Dodge, Jeep and Ram Vehicles?
We specialize in the complete care of Chrysler, Dodge, Jeep, and Ram vehicles, offering top-tier service from start to finish with the help of our expert car mechanic team.
Contact the experts at Ontario Chrysler to learn more about the value of your trade-in and find a new vehicle that better suits your lifestyle needs. We look forward to getting you into the Ram, Jeep, Dodge or Chrysler vehicle of your dreams.