Ins and Outs of Trading In a Financed Car

Before you begin the trade-in process, it’s important to have a clear idea of the current market value of your vehicle. This can help you negotiate a fair price and ensure you’re not being offered less than your car is worth. 

At Rostron Finance, we’ve developed great relationships with more than 50 different lenders and finance specialists to make sure we can offer the best service and deal in the market that will suit your budget requirements and individual circumstances.

It’s worth noting that the value of your vehicle may be affected by factors such as its mileage, condition, and any modifications or upgrades that have been made. Be sure to provide your broker with as much information as possible about your vehicle, including any maintenance or repair records, to help them accurately assess its value.

Before you trade in your financed vehicle, you’ll need to check the terms of your finance agreement. This will help you understand how much you still owe on the vehicle, any fees or charges that may apply if you pay it off early, and whether you’re eligible to trade it in. If you’re still making payments on your vehicle, you may need to obtain written consent from your finance provider before you can trade it in. This is because the lender has a security interest in the vehicle, which means they technically own it until the loan is paid off. If you contact the lender and let them know you are planning on paying it out they can provide you with a payout letter which will have the balance remaining.

If you decide to pay off your finance agreement early to trade in your vehicle, it’s important to be aware of any fees or charges that may apply. Some lenders may charge an early termination fee, which can be a significant amount of money. You’ll need to weigh up the costs of paying off your loan early against the potential benefits of trading in your vehicle.

If you’re applying for a new car loan to finance your purchase, your credit score will be a key factor in determining whether you’re approved, and what interest rate you’re offered. If you have a low credit score, you may be offered a higher interest rate, which can make your loan more expensive over time.

Before you apply for a new loan, it’s a good idea to check your credit score and take steps to improve it if necessary. This might include paying off outstanding debts, reducing your credit card balances, and ensuring that you make all your payments on time.