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Can you trade in a car that has outstanding finance?

Can you trade in a car that has outstanding finance?

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If you still have payments to make on your car, can you still trade it in for a new one? What are your options? How does it all work?

You can trade in a car with outstanding finance but that finance will need to be settled. You can either pay it off with a single payment or roll the outstanding into your new car loan. As long as the outstanding finance is less than the value of the car, most lenders will work with you to set up a new loan while settling the old one.
If your car is worth less than the outstanding, you can still get a loan but it is harder. These are occasionally referred to as ‘upside down’ car loans and will require you to roll your existing loan into your new loan. This will mean either less money for the new car or a larger loan to cover both but it is certainly possible.
Trading in your car
Trading in a car is a relatively simple process as long as you do your research. You will need to know how much you have outstanding on your existing loan, the approximate market value of your car, the cost of the car you’re looking at and the cost of any options you want to add.
You will need to discuss your current loan, outstanding amount and financial circumstances with our dealers but it is all in confidence. We need to know your situation so we can ensure you get the best deal for your car and for your circumstances.
If your loan is recent, it may not be a good idea to trade in your car. The value of the car will have depreciated as soon as you drove it away but the cost of the loan remains the same. If you have made headway into your current loan and the remaining amount is close to, or less than the current market value, there is nothing stopping you trading in.
As mentioned, we can help with a rollover loan if you have a significant amount outstanding too.
Here at Car Nation Canada, we work with people in all kinds of situations. The modern financial market and flexibility of lenders often means anything is possible within reason. Where a few years ago you may not have had the option to roll over a car loan or would have had fewer options to finance, there are now a range of competitive packages out there for you to use.
As always, it is difficult to offer specific advice on a car blog. I would suggest discussing your needs with one of our loan experts at any Car Nation Canada location. We would be more than happy to explore your options with you!
For more information please visit https://www.dixieautoloans.com/

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