Is it better to trade in a car or pay it off?
Ewald Auto offers an easy solution for customers to value their cars online. But before you explore your vehicle's trade in value, should you trade in a car that isn't paid off? Our car dealer in Milwaukee would like to review the important facts about trading in a financed car.
Can you trade in your car before you’ve paid it off?
If you still owe money on that used car in Milwaukee, you might wonder if you can trade it in. Ewald Auto can bundle your existing car loan into your new financing plan. But before you trade in your car, make sure to consider your equity situation.
Use the Ewald car value estimator to research your used car's value. If the value of your car is more than you owe on it, you have positive equity. You'll be able to use your equity as trade in value for your next vehicle. If you owe more than your car is worth, you have negative equity. Owing more than the value of your car means that you'll need to pay the difference before you can trade it in.
Before you make any big decisions, don't forget to contact your original auto lender. Let them know that you are planning to trade in your current car for something new. Your lender will issue a loan payout amount for the remaining balance on your car.
Should I trade in a car that is not paid off?
Let's say your trade in value allows you to trade your financed car. Is it a good idea to trade in your car with an existing loan?
Whatever the value of your car may be, you'll be rolling two loans into one payment. Our car dealer in Milwaukee will merge your existing loan balance with the new financing amount. It's crucial to do the math and ensure that your budget can handle the monthly payments. If the payments are too high to be comfortable, it might not be worth it to trade in your car.
How do you trade in a car that's not paid off?
Just pay a visit to Ewald Auto! Don't forget to bring:
- Vehicle information, including title, registration, insurance, and maintenance records
- All keys and fobs for your used car in Milwaukee
- Loan information, including the payoff amount
- Driver's license
Is it better to pay off car loan before selling?
Paying off your car loan before you trade it in can reduce the amount of paperwork involved. But paying off your loan isn't always the wisest choice. It all depends on your trade in value. If you have negative equity, it's a good choice to pay off your car before you trade it in. If you have positive equity in the value of your car, you're in a good position to trade in your financed car without paying it off.I
