How Do You Trade In A Financed Car?
While most financial experts will tell you to wait until your old car is paid off completely before you trade it in, you can still get a good deal on a new car without having to pay excessive penalties. Just ensure that you avoid common dealer scams, and know the value of your trade-in before you drive off in that new car. Contact the financial institution that is handling your current car loan and find out the exact payoff amount. Being informed about the actual amount will give you an advantage at the bargaining table, especially if the dealer is unscrupulous and tries to inflate the amount of money you owe on your financed car. Remember that the actual payoff amount can fluctuate from day to day due to interest accruals. Obtain a copy of the Kelley Blue Book to determine the current value of your car, allowing for mileage and the overall condition. With this figure, you can determine whether you are “upside-down” on your loan, meaning that you owe more than the car is worth. If you
