I'm in the military and I just bought an SUV. I have decided not to reenlist, and instead go to college fulltime. It is highly unlikely that I will be able to continue with the notes. I will have half of the loan payed off by the end of my contract. Will I still be able to trade my SUV off at a dealership or anywhere else for a vehicle of lesser value?
2007-03-28 14:45:09 · 4 answers · asked by Dustin N 1 in Cars & Transportation ➔ Buying & Selling
You can trade it in, but it may cost you money. The dealer will give you an offer for your SUV, and that money will go towards paying off your existing loan. If the dealer's trade-in offer is higher than what you still owe on the SUV, you can put difference towards a new vehicle. If the trade-in offer is lower than what you currently owe on the SUV, you will have to pay the difference (so it would cost you money to trade in the SUV). Some dealers may give you more for the trade-in than other dealers.
The other thing to check is the terms of your SUV loan. Your bank may have prepayment penalties written in the contract (you may be subject to certain fees if you attempt to pay off the loan before the loan term is over, which is what would happen if you trade the car in). Any penalties or fees in your loan contract would thus reduce the value of your trade-in.
2007-03-28 15:00:16 · answer #1 · answered by kantaro 2 · 1⤊ 0⤋
Sure, but then the dealership will take what you owe on the first car and add it to the cost of the second car. Then, you will be paying monthly for your old car and your new one.
You have to understand that vehicles depreciate in value the minute you drive them off the lot. Financers don't lend you money because they are kind. They do it for the interest. If everyone could trade their car in for a cheaper one half through the loan, we would all do it.
The best you can do is treat the car very gently, sell it and pay the difference out of pocket.
2007-03-28 15:02:46 · answer #2 · answered by Melanie J 5 · 0⤊ 0⤋
Yes they should be happy to,they can sell your old car if its not payed off.
2007-03-28 14:54:02 · answer #3 · answered by thresher 7 · 0⤊ 0⤋
you ought to ask them, but don't live in a dorm it costs more than any fafsa you may get.
2007-03-28 14:55:12 · answer #4 · answered by Anonymous · 0⤊ 0⤋