You are ready for another vehicle, but there is one problem.
You are still making payments on the one parked in your driveway.
Does that mean you have to wait until the loan is completely paid off?
Not necessarily.
In many situations, you can trade in a vehicle that still has an outstanding auto loan.
How Does Trading In a Financed Vehicle Work?
There are two numbers that matter:
- The current trade-in value of your vehicle
- The remaining balance on your existing loan
Auto Avenue can appraise your vehicle, while your lender can provide the current loan payout amount.
The difference between those numbers helps determine your next step.
What If Your Vehicle Is Worth More Than You Owe?
This is called positive equity.
For example, if your vehicle’s trade-in value is higher than your remaining loan balance, the difference may be applied toward your next vehicle.
That can help reduce the amount you need to finance.
What If You Owe More Than the Vehicle Is Worth?
This is commonly referred to as negative equity.
It does not automatically mean you cannot trade the vehicle.
Depending on the amount, your credit profile, the vehicle you are purchasing, and lender approval, there may still be financing options available.
Every situation is different, which is why speaking with an experienced finance team is useful.
Do You Need to Contact Your Current Lender First?
You can request your current payout balance from your lender, but you do not need to figure out the entire transaction yourself.
Auto Avenue can help explain the process and handle much of the paperwork associated with the trade and purchase.
Why Trade Instead of Selling Privately?
Selling privately can work for some people, but trading at a dealership is often simpler when there is an existing loan involved.
A dealership transaction can reduce the need to coordinate:
- Buyer payments
- Loan payout
- Ownership transfer
- Timing between selling and replacing the vehicle
You can potentially move from your current vehicle directly into your next one.
When Does Trading In Make Sense?
You might consider trading your financed vehicle if:
- Your family needs more space
- You need a truck for work
- Your commuting needs have changed
- You want a newer vehicle
- Your current payment no longer matches your priorities
- You simply want to see what upgrading would look like
Getting an appraisal does not mean you are committing to anything.
It simply gives you information.
Auto Avenue Makes the Numbers Easier to Understand
Our team can evaluate your trade, review your financing situation, and show you available options.
With hundreds of vehicles across Calgary and Airdrie, you also have the flexibility to compare replacements across different price ranges.
Find Out What Your Trade Is Worth
Calgary Location
1739 51 St SE
Calgary, AB T2A 1T2
Call Us: (403) 477-7432
Airdrie Location
211 East Lake Crescent NE
Airdrie, AB T4A 2H7
Call Us: (403) 438-8884
Start at www.autoavenue.com