When should I trade in my financed car?
In order to get the best possible car trade in value, it's essential to know when to trade. If your car is financed, getting a suitable used car value is even more essential. Ewald Auto has been helping customers buy, sell, and trade cars since 1964. When it's time to trade in your current vehicle, our Waukesha used car dealership will make it easy. Let's explore how to choose the right time to trade for the highest possible used car value!
How soon can you trade in a financed car?
Technically, you can trade in a car as soon as you purchase it. But that won't yield the best car trade in value. If you financed your used car in Waukesha, you'll be responsible for paying the balance of your loan - even if you don't reach the end of your financing agreement.
You'll need to consider how much money you could lose or gain depending on when you trade it in. The first step is to understand your equity situation, and how it affects the value of your car.
1. Determine the value of your car. You can do this from home, with a car value estimator tool, or by starting the Ewald Max Allowance trade-in process. When you submit your car information to Ewald, you'll be extended an obligation-free offer for the vehicle. This is a simple, fast way to identify what price you could get for your car.
2. Identify your equity situation.
You can have either positive or negative equity in a car. Take your used car value, and subtract the remainder of your loan balance, along with any potential prepayment penalty fees.
- If your car trade in value exceeds the remainder of your auto loan balance, you have positive equity. When you trade in your used car in Waukesha, you can apply the positive equity to your next down payment.
- If you owe more than the value of your car, you have negative equity. There's no need to panic if you're upside down in your car, however. You'll still have several good choices.
- You can pay the remainder of your balance out of pocket. If you need to get into a different car in a hurry, you can settle the balance with your lender before you trade in at our Waukesha used car dealership.
- You could wait until you have positive equity. If you bought a brand new car, the initial depreciation hit puts many people upside down. Waiting a year or two can build better equity.
- You could trade in your car for a less expensive option, if you choose a car with a lower payment.
Whatever decision you make, Ewald is here for you each step of the way. Our Max Allowance tool makes it easy to get a favorable car trade in value. Discover your used car value today, with Ewald Auto.
