I want to trade in my car—a local dealership is offering full Kelley Blue Book value. But I still owe money on it. Can I trade in a car that is not paid off?
, that means your loan balance is more than the value of the car. In this case, you’d use the proceeds from trading the car in and apply it to your loan. Any remaining balance you can pay out of pocket or roll over into the new loan.
But maybe—just maybe—the Kelley Blue Book value will allow you to pay off your entire loan balance. Keep your fingers crossed!
If you have positive equity, your loan balance is less than the car’s current value. You can simply trade the car in and use the proceeds to pay off your old loan. Any extra cash goes right in your pocket!
Since you’re getting a new car, you should also shop around for car insurance. Your lender will require you to carry full coverage, which can get expensive. To find the best deal on car insurance, use the
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