Traiding in a Financed Car

A friend of mine wants to upgrade her car and she still has about 3 more years left on the financing agreement. Can she trade it in???
I have no idea about these things. What can she do???


TIA

Re: Traiding in a Financed Car

Yes, it can be traded in but the balance of the current loan (after the trade in value) will be rolled into the new loan.

Re: Traiding in a Financed Car

you can but it is not always wise or in the best interest.

she needs to know what her payoff is and what the trade is worth.

If she owes more than the car is worth she will have to roll that amount into her new loan. For every $1000 or so, its about $20 more a month for a 5 year loan, give or take.

Re: Traiding in a Financed Car

Example:

She Got a $20,000 Loan (Finance)
She's paid $12,000 - owes $8,000
Blue Book Value may be $6,000
Negative Equity ($2,000) - which can be factored into the new loan...or she can use that $2,000 as a downpayment.

Re: Traiding in a Financed Car

Best bet is to sell it privately or go to car cash.

One piece of advice. If she is going to trade it in, make sure she knows the book value of the car. Also tell her not to tell the car salesperson she has a trade in until she has negotiated her deal on the new car first. This way the salesperson will be more apt to give her what her car is really worth, maybe even pay off the loan entirely if she/she feels the deal will fall through because of it.

Sleazy tactic that works.

Re: Traiding in a Financed Car

Ladies, Thanks so much for your help!