If I can't afford the payments on my Kia Sorento, can I trade it into the dealer to get something cheaper?
"I bought a Kia Sorento. With insurance and the car loan, I'm struggling to make the $800 monthly payments.
Can I trade-in the Sorento to the dealer and get something cheaper?"
“You might be able to trade the Sorento into the dealer for something cheaper, but that depends on how much you still owe on the car.
If you’re upside-down on the car loan, meaning you owe more than the car is worth, a trade-in won’t do you much good. You’ll still owe the remaining balance on the original loan after the trade-in. Most dealers will just roll that amount into a new loan, which means you’ll still be upside-down on your car loan for a cheaper car.
If you don’t owe more than the vehicle is worth, then you can certainly trade it in. Selling it privately will bring in more money than trading in at a dealer, oftentimes as much as 20%. From a financial perspective, this is a no-brainer. If you have the means to list your car, do so. It can help alleviate some of the financial stress of losing money on a trade-in.”
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