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It is not a good idea to make such a trade.

The dealer will offer you significantly less then you owe, and move the difference unto your cheaper car. The bank may not even want to finance your cheaper car because the collateral would not cover the entire loan balance. You may be able to get approved if you purchase GAP insurance when making the trade; however, there is no guarantee.

Even if you can get approved, it would not be the best choice to do so. Imagine making a $500 payment on a car that over 5 years would have had a $300 payment. You could probably keep the more expensive car for the same $500 a month.

Weigh the options. It is usually more expensive to trade the more expensive car for a cheaper one.

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โˆ™ 2013-10-03 14:25:09
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Q: Can you trade in your new car that you still owe a lot on for a significantly cheaper car?
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Related Questions

Can you trade in your new car that you still owe on but have a lot of equity for a significantly cheaper car?

Yes, but your trade in value may or may not cover for the cheaper car so whatever you owe on your current loan will be tacked onto your future loan for the cheaper car you are speaking about.

Trade in an expensive car for a cheaper car?

If you will trade an expensive car for a cheaper one, make sure that the cheaper car is in good condition and the trader of the expensive car should pay exact amount of money for the expensive car.

Can you trade in your expensive car which you own outright for a cheaper car and get money back?

You never get what a car is worth on a trade in. Get the blue book value of your car. Then, sell it outright and take the money to get a cheaper car.

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What to do if you can't pay your car payment?

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You can trade your car in, however the loan balance must still be satisfied.

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Yes you can, but it depends on the dealership you trade it to...some of them will be willing to pay it off when they receive it as a trade.

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How do you trade in your car when you are still paying the loan for the car?

The balance you owe on the car that is getting traded in will be added to your new car loan. Example You owe 10,000 for the car you want to trade in They give you 6,000 for trade in your new car costs 20,000 you will either have to pay that 4,000 or they will add it onto your new car loan from your car you traded in.

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I want to trade my car but i still owe 12474.00 can i just buy a new car?

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Can you trade in your car if you still owe on the auto loan?

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If they have the letter of authority, yes.

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