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Can I trade-in a Jetta for a cheaper car to the dealership if I can't afford the payments?
"I purchased a Volkswagen Jetta for $17,000 two months ago. Now, I can't afford to make payments.
Can I trade this car back in and getting something cheaper?"
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“You have a few options if you can’t afford the car note, but it hinges on how much your loan is for.
If you put down a sizable down payment, and you have positive equity on the vehicle, you can certainly trade the car in for something cheaper. The value of the car you trade-in will go toward your current loan balance (and should pay it off).
If you have negative equity (you’re upside-down) on your car loan, you could trade in your car, but you’ll end up paying for the new loan and the monetary difference between the old car and the new car. In this case, you might want to refinance the vehicle. By doing so, you can lower your interest rate and your monthly payments.”
View full answer
- Gregory R.
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