If you’re behind on car loan payments, trading in your vehicle may still be an option. This largely depends on how much you owe and your equity situation. If repossession has already begun, securing financing for a trade-in becomes more challenging. Grace Quality Cars, serving Central and Western Massachusetts and Southern NH, is here to guide you through your options.
Your equity is key when considering a trade-in. Equity means your car’s value exceeds the loan balance, giving you a better chance for a successful trade-in. However, if your loan balance is higher than the car’s value (known as negative equity), it may be harder to trade in unless you have additional funds to cover the difference. Explore vehicle options in our Inventory for a solution that suits your needs.
If you’re struggling to make payments, contacting your lender is typically the best first step. Many lenders work with borrowers facing financial difficulties and may offer options like deferment, which allows you to skip payments and add them to the end of your loan. This may help you regain stability. If you need more support, you can consider trading in or refinancing. At Grace Quality Cars, we provide various Loan or Lease optionsto help in challenging situations.
When considering a trade-in, it’s vital to keep your lender informed. Attempting to Sell your car or trade it without notifying your lender can lead to complications and even potential fraud accusations if it appears you’re trying to avoid repossession.
In cases of repossession, dealers often notice indicators like late payments on your credit report or a secured interest on the title. They’ll also contact your lender for a payoff amount, which shows your loan balance.
By communicating with your lender before repossession begins, they may allow you time to trade in the car to settle the loan. Here’s how equity impacts possible outcomes:
Understanding your equity position is crucial before trading in. First, check your 10-day payoff amount (available from your lender), then compare it with your car’s estimated value using an online guide or dealership appraisal. If a dealer offers more than you owe, a trade-in could be beneficial. Grace Quality Cars can assist with appraisals and answer questions about our Pre-owned Warranty to help you make an informed decision.
For an appraisal, make sure to clean your car thoroughly, fix minor issues, and provide service records for better value. Accurate online valuations also help you get an estimate, but dealer offers may vary. Remember, Grace Quality Cars proudly serves Central and Western Massachusetts and Southern NH with a commitment to customer satisfaction.
If you’re ready to explore your options, Visit Us at our dealership, browse our Inventory, or Apply here for financing. We’re here to support you with flexible Loan or Lease options. If you need assistance, feel free to Contact Us. We also offer Service and Collision and Body Work to support all your automotive needs.
