What happens if you want to complete a Lexus trade-in when shopping for a new model, but you haven’t finished paying off your current vehicle? Usually, you can trade in a vehicle still under a loan if you meet certain requirements, but it can increase new vehicle financing costs. Keyes Lexus has the details on rolling over your trade-in costs before you sign.
Can I Trade-In an Unpaid Vehicle?
Yes, our dealers can accept a trade-in vehicle even if you haven’t fully finished paying it off. We’ll work with you to transfer the vehicle and your loan over to us when you buy a new model. You may have to offset the remaining costs of your loan with us, though, depending on how much you owe.
When Should I Trade?
Generally, we recommend waiting until your loan is paid in full before you shop for new vehicles. However, if you’re only a short way away from repayment and you need a new vehicle now, it’s worth getting an estimate on your car. Then you’ll know what trade-in value you’ll get and can compare that against the payoff amount on your loan.
How Does This Affect Financing?
The effect trading in an unpaid vehicle has on your new financing plan depends on how much you owe compared to its value. If you owe less than the trade-in value, you can put the net gain toward your new purchase. If you owe more, you can often roll the difference over into your next financing plan; this will increase your new monthly costs, but you won’t have to pay entirely out of pocket.
Explore Lexus Trade-In Options in Van Nuys, CA
Ready to complete your Lexus trade-in and drive off with a new model? Contact Keyes Lexus today to get an estimate on your car and discuss financing options.
