Can A Car With A Title Loan Be Traded in For a Newer Car?
Trading In Your Car With A Title Loan
Can a car with a title loan be traded in for a newer car? Yes, you can trade in your car with a title loan, when you want to buy a new car. the bank will pay off your title loan, and replace it with a new loan for your new car.
If you have bought a car, then the first thing that comes to your mind is what to do with your previous car. There are mainly two options that can be helpful for you rather than a personal loan.
You can go for an option to sell it to a private party, or you can trade it in at a dealership. However, there are some pros and cons to both options. But trading it with a dealership can be more convenient, and this is the best option that many people can choose.
Trade-In A Title Loan For A New Car
Trading in your vehicle means selling it to a dealership to get cash or credit score towards the purchase of a new vehicle. After trading the vehicle, the dealership can later sell it to any customer to get a higher price.
In another case, if you don’t owe anything on your car or vehicle or loan payment, then trading it becomes a more simple and more straightforward process. But trading your car with Oklahoma City Title Loans becomes a little complicated. There are so many questions that come into the mind of every person. For instance, what happens to the title loan application, how much can be earned from the trade-in, etc. Today you are going to get answers to every question.
The right way to calculate your equity
First things first, if you have decided to trade in your car with an auto title loan or related payment plan, then you need to know whether you have positive or negative equity on your car.
Equity means the portion of your vehicle that you legally own. To know the equity, you need to subtract the remaining balance on your loan from the resale value of your vehicle. If you get the difference between the two numbers to be positive, then you have positive equity. But if the difference between both the numbers is negative, then you have negative equity, which in other words, means you are underwater on your collateral loan.
Calculating your equity will help you know in which direction to move to complete the trade-in process and have a simple payment plan.
The best way to trade in your vehicle with a positive equity
If you are known to have positive equity in your car with the online title loan offer, then you can trade it in and apply for your equity after the purchase of your new car.
For instance, your car’s resale value is known to be $15,000, and you own $5000 of your loan, which means you have $10,000 equity. However, the trade-in value of it will be lower. The dealership will be able to offer you only $11000. In case you accept the offer, then you are still accountable for paying the remaining balance of your auto loan in Oklahoma. Thus, $6,000 is your positive equity.
The best way to trade in your vehicle with a negative equity
Another situation is that you owe more on your vehicle as compared to its worth which means you have negative equity. This situation can be handled best if you hold off on the decision of trading in your car until you get positive equity on your car or you have completely paid off your collateral loan. However, you also have the option to trade in your vehicle with a negative equity by choosing two options which are:
- Pay the difference
- Roll your negative equity into a new loan
Simple tips to trade in your vehicle with a car title loan
You can follow the simple tips to trade in your vehicle with a car title loan in Oklahoma, no matter the positive or negative equity:
- Get various trade-in offers – You can try this option with various dealerships so that you can get more money than expected on your car with title loan companies.
- Don’t hesitate to negotiate – You can always try to negotiate for online title loans in Oklahoma without any hesitation.
- Confirm that the title loan has been paid off – If you are trading in your car with Oklahoma City Title Loans, then the dealership is responsible for paying off your loan. Thus, ensure that you go through your loan balance after some weeks.
Conclusion
It is possible to trade in your car with a loan agent for a title loan for a newer car. However, you need to follow the right way to do it. Otherwise, things can get a bit complicated.