Is It True That I Can Trade In My Car That I Still Have A Loan On, And Get Cashe To Buy A Used Car.

Posted in Used Car Loan

I am trying to find ways to save money do that i can pay off my debt and live a normal life.I just got a car 3 months ago. My intrest rate it sky high 28% due to my credit. So the payment is like 475.00 a month.
And I want to consolidate debt, but need guidance.
I am just trying to find ways to save money while paying off debt and having a little left over to spend here and there
it is a 2005 Honda Civic 17,000 miles

There are 10 Answers for "Is It True That I Can Trade In My Car That I Still Have A Loan On, And Get Cashe To Buy A Used Car."

    1. Barkley Hound says:

      Some dealers will pay off your loan and add it to a new loan. If you are trying to do that with a 3 month old car the loan would be too large for them to accept. You are stuck since if you sell the car you will still probably owe a balance. You made a bad decision.

    2. papercutfaint says:

      If you have equity in the car which is highly unlikely

    3. badkittin23 says:

      If your APR is 28% chances are that you do not have a strong enough credit background to swing something like that. Depending on the ACV (actual cash value) of your car you may have negative equity and that would also need to be rolled into the loan. My advice would be to stay in the car for 6 months to a year and then think of trading it in. This will help build or stabilize your credit. Even though dealers offer incentives on certain vehicles if you are looking to lower your payments it is not going to happen unless you pick a car that is thousands less then the one you own now. Good luck

    4. james says:

      First, you should have considered the amount of debt that you would be in by buying this vehicle, doesn’t really make to much sense to me.

      Also, unless you want to find yourself in more problems, think about your decisions before making them!

      Finally, most places would take a trade depending on the equity that you have in the vehicle and apply the remaining to the vehicle your looking at acquiring.
      As for the money part, most would not give you the cash since they are in business to make money, not to give it out!

    5. democracyisit says:

      Why would you want to switch to a used car when you have a perfectly good new car?

      It may be tempting but generally the manufacturers have provided great loan programs and so your terms for the loan would be far worse with a used car.

      Look up the value of your car on ^( ^(

      and compare that with what you owe.

      Remember the dealers are in the business of making money not giving it away.

      If you sell on your own you will likely get a better price than if the dealer has to do so.

      Similarly when shopping for a used car look at the web sites provided and then decide on what you want to pay for the car.

      If you go for another new car you may fare better as the manufacturer of the new car may have a humdinger of a finance deal for you to move the inventory which is building up as we speak.

      Best to stay with what you have for as long as you can without spending too much on repairs or endangering yourself or others if you want the most for the dollars you spent when buying.

      At times the needs and situations may change, but cost out the increased benefit be it more room or better gas mileage and you will see that keeping the car may be a better economic move.

      Finally only sell if you no longer need the vehicle for getting to and from job or some other equally important purpose.
      If you need to keep a car, go to the lender and try to re-negotiate the loan. I

      f you need help with the negotiation ask for assistance from an agency like the salvation army or at your church. Here is a web site for some credit management tools ^(

    6. steelers12661 says:

      Tough situation. Typically you can trade in a car and get a smaller, lesser vehicle for a lower payment. You simply take the balance owed on your current vehicle, subtract the value from that balance, and then finance the difference on the new vehicle.

      Considering you purchased only 3 months ago, it will be difficult to trade. If you put some substantial cash down then there’s a chance of trading. If not, there’s little that you can do about your $475 car payment.

      My first thought is that you’re in this situation because you’re not making good choices about how to spend your money. I’m not trying to point out a flaw here, but I think that you should seriously consider ALL of your spending habits and decide if there’s something else you have that you could live without.

      If you want to fix your credit, you’ll need to buckle down and pay all of your bills. Once you’ve got a couple of years on this vehicle, you can probably trade it. But my guess is that for now you may be stuck with it.

      I used to make bad spending decisions, but then I realized that everything we NEED in life (food, shelter, family, happiness) is free or very inexpensive. The things we WANT (cool cars, clothes, luxury items) are the source of all of our problems and they very rarely make us happy.

    7. Scott B says:


    8. alamo says:

      Based on your post, I am assuming that you owe much more on your car than its trade in value. Which means that you would owe cash (or “cashe” as you put it) if you traded it on another car.

      A fairly easy way to figure it out, would be to go to the Kelley Blue Book Site ( ^( and enter in your cars information. You will need to look at the trade in value.

      Once you have that number you will need to get how much you owe on your car from your loan statement.

      then use this formula

      Trade-in value – loan amount = net proceeds

      In your case, this will most definitely be a negative number, meaning you are stuck with your 28% interest rate for the length of your loan.

    9. fivelow83 says:

      475 a month the car better be an 07 Cadi good luck with that sorry

    10. gtamayo1 says:

      heck no ladie you are stuck in it for a while, it is not going to be worth that, if you sell it you would have to sell it for more than your balance on the loan, and you paid retail, a dealership whill give you wholesale value for it, especially if you got a 28% other banks will not touch you now for at least 6 payments that show on your credit report, and they report 2 months behind!
      good luck !