Trading in a Financed Car: What to know
Clear Credit Solutions is a multi-award winning clear credit service. Most consumers are unaware of what is on their credit report whether they are looking for something simple like a new phone plan or a brand-new property. Credit defaults, court judgments and clear outs can impact and stop any kind of finance application from moving ahead. These negative listings are not even discovered until a new finance application is made.
Services like ours can assist in removing these listings so clients can proceed with their finance but not everything can be removed. That is why after discovering something on a credit file the next step is to call Clear Credit Solutions. Not only do they offer the best advice and an award-winning service, but useful articles like the ones below are available throughout their extensive website.
If you are looking for a new ride but still have an outstanding loan on your current car, trading it in at the dealership could be a viable option. Even though this might seem complicated to some, getting approval from your lender and trading in with existing debt is actually possible! In this clear credit article we will provide more information about what’s involved in this process so keep reading to learn all about it!
If you have an unpaid loan and wish to trade in your car, most dealerships are willing to accommodate. However, it is important that you be candid with them about the details of the financial situation. Make sure to explain how much money is still owed on the vehicle before negotiating a deal for exchanging into another car or upgrade. The dealership will then contact your lender and make necessary arrangements once they know all pertinent information regarding repayment amounts and terms agreed upon by both parties for the new purchase.
While trading in a financed car can potentially lead to smaller monthly payments if you purchase a cheaper vehicle or acquire an advantageous auto loan, there is also the risk of accumulating more debt or facing higher interest rates. Make sure to take your time and consider all options carefully before making any financial decisions– speaking with your lender will be key to helping decide what’s right for you!
If you’re selling or trading-in a car with an existing loan, it is vital to go over numbers and make sure that the remaining balance can be settled before doing so. Be aware that certain lenders could charge breaking fees or other charges if repayment occurs earlier than its predetermined duration. Moreover, take some time to read through your loan agreement in order to become informed of any specific clauses concerning your vehicle’s active loan when being sold or traded-in.
If you’ve got a fixed-rate car loan, the lender may charge early exit fees if you decide to pay back your debt ahead of time. They might even include an estimated interest rate in their calculations to guarantee they recoup what was originally agreed upon. It’s important that you read through your loan agreement with care so as not to miss out on any additional charges or discrepancies – these can differ between lenders, after all!
When you initially applied for your car loan, the age and condition of the automobile were taken into account. However, when it comes time to trade in your vehicle now, its current worth compared to what is due must be considered as well. If the former amount falls below what is owed on it , then any outstanding debt will have to be paid out-of-pocket; a straight exchange won’t satisfy the lender’s stance.
When planning to trade in a car before it is fully paid off, there are other options available. Namely, you may choose to sell the car and repay the loan, refinance your auto loan or simply pay off the existing loan itself. Knowing these choices can prove beneficial when making decisions regarding this matter.
To end, trading finance cars can be a option depending on your circumstances and financial goals but looking into the agreement of your loan and keep your credit report healthy and secure.
At Clear Credit Solutions, it is our passion to help you improve your finances and credit score so that you can make your dreams a reality. Whether you need to take out a loan or are looking to purchase a car or a house, we have the knowledge and experience necessary to get the job done. With years of expertise in the credit repair industry, we are more than qualified to help you reach your financial goals. Contact us today on 1300 789 783 and let us remove those negative listings from your credit report. With our help, soon enough you’ll take control of your finances and be one step closer towards achieving those aspirations of yours!
Source: Jasper
At Clear Credit Solutions, we understand how important having good credit can be to your financial future. We want to help you reach your goals and remove the negative listings off from your credit report that are holding you back. Our team of credit repair experts will work closely with you to develop a tailored plan of action so that you can take charge of your finances and get the finance approvals you need. Don’t wait any longer, contact Clear Credit Solutions on 1300 789 783 or fill out an application form today and let us use our expertise to help make sure that you’re making smart decisions about your financial future!