Hello. a quick question.
I want to trade in my 2000 SEMax for a 2002SE.
I am still paying for the car. How does it work?
Can I trade in a car that is not payed off?

Thank you

 

Yes, you can trade in your car if you still owe money on it. When you get a new loan the bank will just add the remainder of your first loan to your new one.

 

Trade-in works like this...you plan to buy a new car at the dealer..the look at your trade-in car and give you a price for it..lets say the want to give you $15,000 for your 2000 Max and say the 2k2 Max will cost $27,000..they just subtract 15000 from 27000..since your car is not payed off yet dealers most likey wont make a deal with you until you pay off the rest of the car..trade-ins are good becasue 1) you do not have to worry about getting rid of the car yourself...2) you will probably get a little less then what you will get if you sell it by yourself but when they calculate the final price for your new car they add tax price after deducting the trade-in value instead of the original 27000...

 

Yea this will work if you are getting a loan from the same bank.

 

It's very rare to get a good deal on a trade in. In most cases you loose. This site has some good tips on selling used vehicle and a section on trading in ( near bottom of this first web page ):

http://www.carbuyingtips.com/sellused.htm

Here's a link to the site:

http://www.carbuyingtips.com/

 

What ACTUALLY happens is that the dealer (or finance company) will pay off your old loan, and write a new one for the new vehicle (and work in any deficit between the value of the trade-in and the balance on the old loan.) If you're lucky the old loan balance will be lower than what they give you in trade value on the old car.

A lot of people get focked on deals like this. Watch the numbers very very carefully.