You may feel as though now is a great time for you to trade in your current vehicle, but you are concerned because you still owe on your car loan. This surely is a predicament to be in, but there is an answer to your question...can you trade in a vehicle when still owing on your car loan?
COVID-19 has made the pre-owned car market crazy! It is hard to find a good used car out there. You may be interested in trading in your current car for a newer model and asking yourself, "Can I trade in a vehicle while still owing on your car loan?" The answer is -Yes, yes you can. However, there are some stipulations. It is quite simple if the amount left owing on your vehicle is less than your trade-in value.
Example: If you owe $2000 left on your car loan but the value of your trade-in is $4000, then the dealer pays the remainder of the loan, alleviating you of the lien.
Therefore, you can trade in a vehicle when still owing on your car loan, you just need to sign ownership of the vehicle to the dealership.
But if the trade-in value quoted is less than what is left owing, a trade-in is most likely not feasible.
It is always good to know the value of your trade-in when thinking of getting a new vehicle and you can find out easily how much your trade-in value is online or come get your quote at the dealership!
