Quick Answer: Can I Trade In A Car That I Am Still Paying For?

How does a trade in work when you still owe?

When the amount you owe on the car is less than the trade-in value, the process is pretty straightforward.

Say you still owe $5,000 on a car, and a dealer offers you $6,000 for it as a trade-in.

The dealer pays off the $5,000 loan for you, which releases the lien.

Then, you transfer ownership of the car to the dealer..

What is the best mileage to trade in a car?

First milestone: 30,000 to 40,000 miles Generally, most new car warranties expire at either 36,000 miles or three years, whichever comes first. Because cars depreciate at a slower rate after the first three years of ownership, the best time to trade in your vehicle is during this first major milestone.

Why you should not trade in your car?

Business school researchers say you’ll pay more for your new car. But selling it yourself can be a hassle – and even dangerous. … And used cars obtained on trade-ins carry a very high profit margin for dealers when they put them on their used car lot or sell them wholesale.

Will CarMax buy a car with engine problems?

Does CarMax Buy Cars with Mechanical Issues? Yes, they will. CarMax purchases all makes and models, in all kinds of conditions. So, for that car with engine issues, the car with the “check engine light” on, you will have a buyer.

At what mileage do cars die?

Typically, putting 12,000 to 15,000 miles on your car per year is viewed as “average.” A car that is driven more than that is considered high-mileage. With proper maintenance, cars can have a life expectancy of about 200,000 miles.

Should I pay off my car before I trade it in?

When the dealer credit is actually a good idea. If you only owe $3,000 on your loan and your dealer offers a $2,000 sign-over bonus, it may actually be a good financial move to trade in your new vehicle rather than paying off the remaining $3,000 over the course of several months.

Can you trade a car with problems?

The simple answer to this question is yes, you can trade in a car with problems to a dealership. However, your electrical, transmission, engine, AC or other car problems will only transform into another type of problem; money!

Where is the best place to trade in your car?

If the Edmunds offer is the highest, sell it there. If you have your paperwork in order, you could be done in 30 to 40 minutes. But if you are upside down on the car and need to fold the loan balance into your next car’s financing, the dealership is the best place to do so.

Can I trade in car with check engine light on?

A check engine light should not be a serious barrier to trading in a car. Some research before you go visit the dealership will allow you to trade in the car and receive the best value for the trade. … If the computer senses something that prevents optimum operation, it will cause the check engine light to illuminate.

Does CarMax pay more than dealers?

While the CarMax offer isn’t as much as you might get by selling it to a private party, selling it to the used car chain offers these advantages: It eliminates the expense of advertising your car and the hassle of showing your car to strangers. CarMax prices are usually higher than those that a dealer offers.

What is the best age to sell a car?

Most people offload their car at a certain age or mileage, regardless of whether or not it’s past its sell-by date. But that age and mileage is invariably at a point when the maximum money is lost and the car still has plenty more to give. Most cars are sold on at 3-5 years old, and 40,000-60,000 miles.