How To Trade In a Car That’s Not Paid Off

August 3rd, 2021 by

Tiny car with coins and finance paperwork

What are your options if you need a new car in Nashville, but you haven’t finished paying off your current car? Fortunately, most dealerships will allow you to trade in your car early, usually for a small termination fee. In the guide below, you’ll learn how to trade in a car that’s not paid off from the auto finance experts at Victory Nissan of Dickson.

How to Trade In a Financed Car

Even if you still owe money on your car loan, you don’t need to wait till the end of the term to replace your car. Trading in a financed car early can be a convenient option if your needs suddenly change and you need a car with different dimensions, capabilities, or features.

Trading in a car that’s not paid off is easiest if the present value of your car is more than the amount you still owe on the loan. In this scenario, your dealership will allow you to apply the difference toward a new vehicle. In other words, they’ll roll the amount you owe on your old loan into a new loan.

If your car has been damaged or you haven’t kept up with your monthly payments, then you might owe more on your loan than the car is currently worth. This is known as “negative equity” or being “upside-down” on your car loan. Whether or not you’ll be able to trade in your car in this situation is up to your dealership.

How To Trade in a Lease Early

Whether you lease or finance, it’s often possible to trade in your car early. Contact a Clarksville-area dealership to learn more about ending your lease before the end of the term. Keep in mind that with early lease termination, you may be required to pay:

  • An early termination fee as a flat fee or series of payments.
  • The remaining balance on the lease, as well as your car’s remaining depreciation.
  • The cost of repairs necessary to meet the terms of your lease agreement.

Value Your Trade in Dickson

Whether you’re looking to refinance your car loan or calculate your monthly payments, we’re happy to assist at Victory Nissan of Dickson. Contact Victory Nissan of Dickson for car-buying tips and step-by-step guidance, or visit us near Franklin

 

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