Can you trade a car in before it’s paid off?
Do we have a deal?
So, you’ve got a loan you’re paying off on a car you’re starting to feel bored with. Do you need to stick it out until your current ride is paid off before you can start checking out new models with any serious hope of making a purchase? Can you trade in a car before it’s paid off? Today we’ll help you understand how this is possible and help you decide if it’s the right choice for you. We may be happy to help you look at new vehicles, but we want you to be happy with your decision so we’ll give you both sides of the coin.
First thing’s first, to answer the main question here: Yes, you can trade in a car before it’s fully paid off. What happens is we here at Palmen or the financial institution of your choice will help you roll your current debt into your new loan (factoring in of course the trade-in value of your vehicle). Why might you want to do this? Maybe you can’t get your eyes off that new vehicle and the incentives right now are so good you just can’t pass it up. Hey, it happens. Realistically, you can probably achieve a similar monthly payment but it might be over a longer term. If you’re down with that, by all means get into some new wheels.
Alright, so why not jump on it? Well, the question is really whether you think you can actually wait a little longer until your current vehicle is paid down or off entirely. This gives you the most equity to work with and is certainly what many would call wise in this situation. Depending on how well you treat your vehicle, anyway — if you’re the type to put a lot of wear and tear on it there may be an addition downside to keeping it around longer. Assuming you’re a good driver, though, you’ll probably end up on top by waiting it out.
In the end we want to stress that it’s entirely up to you and it’s also up to you to get all the facts. Do plenty of research, ask people you trust (yes, even that stickler-for-penny-pinching uncle of yours) and make the choice you know you can live with. If you have any questions about the trade-in process, with or without a loan to pay off, give us a call here at Palmen Buick GMC Cadillac anytime!
