Can I trade in a car I just bought?
Thinking of putting your car for trade at Ewald Auto? At our car dealership near you, trading in your vehicle is simple, fast, and stress-free. But what if you recently purchased the car you wish to trade in? Is it possible to trade in a newly financed car? Is it a good idea?
Don't worry! The experts at our trade-in car dealership are here to answer your questions about trading in a new or financed car.
How does trading in a financed car work?
First of all, yes, you can trade in a financed car at Ewald Auto. While you are able to trade in your car, doing so won't make the loan balance disappear. Let's cover how a car trade in works when the vehicle is still being paid off.
- Figure out your loan payoff amount. The remaining balance on your loan is usually included with your monthly statement. You can also call your financing provider to receive a payoff amount.
- Determine your used car's trade in value. Ewald Auto offers the easy, convenient Max Allowance tool to value your car online in minutes.
- If your remaining loan balance is less than the value of your car, the difference will be credited towards your next vehicle. You'll receive a credit at our car dealership near you for the difference.
- If the loan balance is more than the value of the car for trade, you'll need to pay off this amount before you can trade in your car.
How long do you have to wait to trade in a car you just bought?
You can trade in your car immediately, in theory. There's no mandatory waiting period to place your car for trade! However, our car dealership near you doesn't encourage trading in a brand new car. Vehicles depreciate as soon as they leave the dealership, meaning your new car took an immediate and steep value loss. If you opt to trade in a car while it's brand new, you'll need to pay the difference in value. Your used car trade in value can plummet by up to 20% in the first year alone.
Should I wait before trading in a new car?
It's a smart idea to wait for a car trade in until you've built positive equity. Customers who submit their car for trade with negative equity will need to eat the depreciation cost of pocket, as well as pay for their new car. Ewald Auto recommends trading in cars at our dealership once you don't owe anything, or at least have enough equity to break even.
How long should you wait to trade in a car?
Your trade in value is determined by many factors. Vehicle age is one of them. When a car is fewer than three years old, it can often still fetch 60-70% of its original price. After a car hits the five year mark, the rate of depreciation slows down significantly. The best time to trade in your car is whenever you have positive equity built.
The friendly staff at our car dealership near you will be happy to answer your questions. We'll help you figure out the right time to trade in your car. Visit Ewald Auto today to begin the trade-in process!
