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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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.
Is the LS the cheaper vesion of the Lexus?
Yes the LS is definitely the cheaper version of the lexus. It's more affordable than most lexus cars. It's still considered a luxury car despite being significantly cheaper than most lexus cars.
What to do if you can't pay your car payment?
sell it or trade it in on something cheaper
What is the used car sales tax in Nashville Tennessee?
Zero, if you trade a more expensive car in and get a cheaper one
Can I trade in my car when there is a loan balance?
You can trade your car in, however the loan balance must still be satisfied.
Can you trade in a car you still owe on for a new car?
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.
Can you trade in a used car for a cheaper vehicle in order to lower your monthly payments?
yes you can. yes you can. yes you can.
I trade my car for another one but im not happy i still have the other car log book can i still have it back?
No.
Is a used Mazda Miata better than a cheaper new car?
A used Mazda Miata is a quality car. If the miles on the car are fairly decent then there is no reason why it would not be better then a new cheaper car as it still looks good.
If my car has been repossessed can I still trade it in for a different vehicle?
No, you no longer have anything to trade (the car is now the property of the repo company not you).
Can you trade-in your car for a used car?
yes, even if you still owe money on your current car
Do you get cheaper car insurance if you are in the armed forces?
Not that i have found. i don't tell them I'm in the forces but rather the job i do in the forces (mechanic) this tends to lower it a bit. You are eligible for USAA insurance and that is usually significantly lower but you still need to shop around.
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.
Would it be cheaper to buy a new car in ME or FL?
it would be cheaper to bye a car in FL.
I want to trade my car but i still owe 12474.00 can i just buy a new car?
Yes you can trade your car in, but they are only going to give you what the blue book value is. Then the remainder of what you still owe, they will put it towards the new vehicle you get. I know this because I done it.
How does European union encourage voluntary trade among its members?
EU does not need to encourage trade among its members. This trade is advantage. For example Czech Republic participates on car production in Germany because it is cheaper and not far away.
Can you trade in your car if you still owe on the auto loan?
yes you can trade it in. But if you owe more than what the dealer is going to give you for the car the remaining balance will be added to your new loan
At what age does car insurance get cheaper as you get older?
Car insurance first gets cheaper when you turn 25.
Cheaper to build a car or buy one?
It depends what you want if you buy a car from a auction you will most lightly get it cheaper. But it proably cheaper to buy one!
Can you trade your car in for an inexpensive one?
Yes, but you will still have to make payments on the car being turned in if you don't have 'clear title'.
Can you trade in a deceased persons car if they still owe money on it?
If they have the letter of authority, yes.
Can you trade in a car with a higher value than the car you want to purchase?
Sure you can, but odds are that you'll lose significantly on it. The dealer won't be particularly happy to hand out cash, so he'll probably assign something much lower than street value on your trade-in.
Is it cheaper to buy a new car or changing an engine of an old car?
Usually cheaper to change an engine, but then you have an old car with a new engine.
