Car trade-ins work like this. when you're trading in your old car, the dealer will usually offer you a quote for how much they think it's worth. you can then either take that amount or shop around for an offer closer to what the vehicle is actually worth. generally, if you tell them upfront what your absolute minimum price is (the one under which you'll walk away), many dealers will stop wasting their time and make an offer close to the bottom line before negotiations start.
how does a car trade in work if you still owe?
it's true that when you trade in a car, the dealership sometimes still retains interest in the old vehicle and it will attempt to collect.
sometimes they can make arrangements with your lending institution and work out an agreement where you continue paying on the old loan in lieu of making monthly payments on a new one; many times these arrangements offer better rates than what they would charge.
the problem with this is that if you fail to complete your end of such an agreement then they can issue a warrant for collection or lien against your new vehicle.
it is always best to work out something before going through any transactions so be sure to consult an expert!
how do you trade in a car that is not paid off?
you have a choice between selling the vehicle to someone who will then pay the rest of your loan off, or you can trade it in for another vehicle. the process is typically that you contact the dealership about what type of car they have which meets your needs, choose one near its payoff price, and then go through their process to trade it in. good luck!
is trading in a car worth it?
trading in a car for a newer one can be expensive because of the need to pay for taxes, title, and registration fees. these charges are generally just around $200 on top of what you paid upfront when purchasing your new vehicle. so before deciding whether or not you should trade in your car, make sure that it's worth it.
on the other hand, trading in your car means savings indirectly — by lessening environmental waste and pollution! remember to keep this information in mind if you're considering trading away the older model of the toyota prius back to them for “certified used” models while retaining ownership (read more about that here). you may also want to look into environmentally friendly options like using https://www.
do you lose money when you trade in a car?
yes, when you trade in a car you forfeit the residual value of the car. the amount that is forfeited depends on how old your car is.
if you own an auto that's older than 5 years, then it'll be worth significantly less than if it's newer. essentially, this act is just transferring money from your pocket to the dealer's pocket. what usually happens is that people trade in their cars thinking they're getting a better deal when they could actually get more cash for their vehicle by selling it privately or through online classifieds. if you choose to do so, make sure there are no hidden issues with your vehicle before making any offers – namely check if there are any recalls or carfax reports for additional
