Can you trade in a car that is not paid off?

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A lot of times people are under the misconception that if you automobile is not paid off, you cannot trade it in. That is certainly not true. Someone might want to upgrade to another vehicle or simply opt for a car that has a lower monthly payment. A lot of dealerships now offer trade in deals. The process is fairly easy, quick and hassle free. If you are in considering trading in your vehicle that is not fully paid off, there are some things that you need to keep in mind that will help you in the longer run.

Obtain the remaining loan amount

It is very beneficial to find out the remaining payments due on the car that you want to trade in before you begin the process. Don’t forget the interest payments that need to be added as well. The best way to get the most accurate amount would be to call your lender and find out the payout amount. If you decide to pay off the remaining amount, it makes the trade in process much simpler.

Getting the value of your trade in vehicle

One of the most important aspects of a trade in process is to take into account the value of your vehicle at the time of the trade in. The things you need to consider include the year, make and model of the vehicle, and the condition of the vehicle. You can also use online tools such as Black book to find out the value of your automobile. This helps you understand what the value of your vehicle will be gauged at roughly. The dealership you choose to trade in with will do their own assessment but knowing the value will help you when negotiating a deal for new car.

Getting documents ready for trade in

One of the most frequently asked question about trading a vehicle is “what documents are required to trade in a car?” When you are trading in a vehicle, it is important to understand that it is a legal transaction that requires proper paperwork. Thus, make sure you have the car’s registration documents. You will require to sign documents transferring ownership to the dealership once the deal is in place. Personal Identification is also another requirement. It is required to prove you are the person who owns the vehicle and can legally trade in the vehicle. If you are choosing to get a car loan for the new vehicle, you will also require proof of income documents, credit report or you can even opt for a pre-approved loan.

Read the contract carefully

When you make a deal with an auto dealership to trade in your old vehicle for another one, it is important to read the contract carefully to make sure you are not missing anything. Reading the fine print carefully is crucial to make sure you are getting what was discussed. If a dealer offers you a deal verbally, make sure you get everything written down in the contract. Do not feel pressured to trade in your vehicle if you feel that you are not getting a fair value for your vehicle.

Process after trade-in

Once a deal has been struck, the old car ownership is transferred to the dealership. They will handle the payments on the old car once they get possession of the vehicle. Many of the dealerships will recondition the car by taking care of mechanical repairs, auto detailing, and safety certification. They will then try to sell the trade-in vehicle to recover their cost. The dealership may alternatively decide to auction off the traded-in vehicle or wholesale it to an auto broker.

Hassle-free trade-in with Any Credit Auto Loans.

If you are looking to trade in your vehicle, Any Credit Auto Loans can help you get the best deals and simplify the process of purchasing a new vehicle while trading in your current car. Get started today by calling us or filling out our forms.

For Guaranteed Car Loan Approval, contact us now.

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