If you are itching to get a new car, but you still haven't paid off your old one, don’t fret!? This is a common problem, but nothing to fear. You can trade-in your old car before you've paid it off, and I can help you do it!
It is very common for car enthusiasts and most dealerships to do this. It's so common that you shouldn't even expect a dealership to flinch when you announce that you still owe money on your current car. You no longer have to go to the trouble of paying off your car loan and waiting for the title to come before shopping for a new model.
So how is it done? It’s really simple.
- Once you've traded in your car, our dealership works with your bank or financial institution in order to pay off the loan for you. We determine from the lender you obtained your car loan through what the current payoff amount is so that we can pay off your loan and close it out within 10 days. The result is that you usually won't even have to bother calling your bank to inform them you're selling your car; instead, the dealership will do all the legwork.
- When the dealership takes possession of the car and deals with your lending institution, the dealership gets the title. The car then becomes ours to sell, whether to a retail buyer or -- more likely -- at a wholesale auction to another dealer.
- Just because you're trading in your used car doesn't mean you no longer owe any money on it. While you certainly don't have to continue making payments on a car you no longer own, if you are a driver who is upside down on a vehicle loan, you will find that the dealership has rolled over the negative equity into the new car's payment. That money doesn't simply vanish; instead, you'll end up paying it as you pay off your new car.
Come see me if you have a loan on a vehicle you plan to trade in and we can find the right new vehicle for you. I can also help you decide whether taking on new debt for another vehicle before you have paid off your old vehicle is the right decision for you.