How To Trade In A Car With A Loan: What You Should Know
If your car isn’t paid off, you may be wondering if you can trade it in. For that matter, you may simply be wondering “how to trade in a car with a loan?” This is a frequent question here at Earnha rdt Lexus where we are in the business of buying cars not just selling them. In fact, we often buy cars outright.
Six Steps To How To Trade In A Car With A Loan
If you want to make trading a car with a loan as easy as possible, we recommend these steps.
- Determine how much you owe
- Research the Market Value
- Determine if you have positive or negative equity
- Sell the car to a reputable dealer for a fair price.
- The dealer will pay off your loan.
- You will get the remainder in the form of a check.
1. Determine How Much You Owe
To get your equity from a car, you want to find out how much you owe. For that, you’ll need to be in touch with your lender. Be sure to find out the total amount you owe now and what date that amount will change. Your lender can tell you more about how the timing will affect your total amount owed.
2. Get A General Marketplace Value
Next you should determine how much your car is worth to a dealer. You can start with this simple car valuation tool. It is operated independently by Kelley Blue Book. If you bring the offer to our dealership, we will perform an inspection and let you know what we think it is worth.
3. Positive Or Negative Equity
If you subtract what you owe from what the car is worth, is there money leftover? That’s positive equity, and it’s definitely a good time to be selling your extra car. If you still owe money on the car, that’s negative equity. In this case, you may want to discuss the situation with our loan department.
4. Sell The Car To A Reputable Dealer For A Fair Price
Earnhardt Lexus is a reputable dealer that will buy your car outright. We are part of a family of dealerships, and our core values include customer service and satisfaction. Our goal is to pay a fair price to anyone who sells a car to us.
5. The Dealer Pays Off The Loan
When a dealer, such as ours, buys a car, the lender must be paid first. This allows for the transfer of the title from the lender to the dealership. That’s because the lender is the legal owner of the vehicle until all debts are paid on the car.
6. The Dealer Pays You
Once the loan is paid off, the rest of the money is yours to keep. While we know that people would love cash for cars, we do pay with a check. It’s just not safe to walk around with lots of cash! When you leave, your loan is paid off. You have some money from the transaction, and you don’t have any more payments to make. That’s a big win!
Trade Your Car With Earnhardt Lexus
Now that you know more about how to trade in a car with a loan, get a valuation to get started. Give Earnhardt Lexus a chance to buy your car.