Can I trade in my financed Hyundai for a cheaper one if the car is worth more than the loan balance?
"I have a Hyundai Accent with around $4,000 in positive equity (worth $10,000, but car loan is at $6,000).
I want to lower my payments by getting a cheaper car.
Can I do a trade-in on the car to get a less expensive one?"
“You definitely can make this deal work. If you trade the car in, the dealer will give you a “dealer value” for the car, which is lower than a private-party value.
This money allows you to pay off your original loan and gives you money to put toward the new loan. Keep in mind that if you sell the car privately, you can probably get about 20% more for the vehicle than the dealer will give you.
After you trade the car in, the loan process is the same as the first time you got a loan. Make sure to shop around, so you can get the best rate possible. Do the same with your car insurance to pay the least amount possible.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
What are the best cars for driving on snow and ice?
"I live in Upstate New York, where the winters can be pretty bad. I’m looking for a car that handles well in winter weather conditions. Which ones should I consider? "
Apr 13, 2021
How can I get reimbursed for medical bills in Minnesota if I was in a rental car accident (not at fault) and from out of state?
I was in Minneapolis to visit family. I rented a car and was in an accident where I wasn't at fault. I know that Minnesota is a no-fault state, but being from out of town, I don't have personal injury protection. What should I do?
Apr 23, 2021
Can I register my financed vehicle as non operational to avoid paying insurance?
"My insurance is expensive for my financed car. I want to get an older vehicle to drive instead. I'll still be making payments, but won't be driving my financed car. Can I register it as non operational?"
Jul 28, 2021