It can be frustrating to keep paying for a vehicle that you’re ready to upgrade. The good news is that even with an existing lien, it is possible to trade in your vehicle. Our Mercedes-Benz financing experts at Mercedes-Benz of Silver Spring are weighing in.
Determine Your Trade-in Value
Before you begin, we encourage you to get an accurate estimate of your trade-in value, which you can get online or at our dealership. We consider the current market value of your vehicle’s year, make, and model and take into account its mileage and condition.
Determine Your Vehicle’s Equity
Next, you need to determine how much equity you have in your vehicle. You’ll need to know your loan’s payoff balance to do so. If you owe less on your vehicle than it’s worth, that’s positive equity that can be applied to your purchase. If you owe more, that’s known as negative equity or being upside down in your loan.
Pay Off the Balance
If you have negative equity, you’ll have to pay off the remainder of the loan before you can trade it in. You can make a lump sum payment or start making larger payments on your loan to help narrow the gap.
Transfer Your Negative Equity to a New Loan
Another option is rolling over that negative equity into your new auto loan, depending on your financial approval. Keep in mind that if you do this, you will immediately have negative equity in your new purchase. Our financial experts are happy to help you weigh your options to find the best option for you.
Visit Our Silver Spring, MD, Dealership for Mercedes-Benz Financing
Don’t be discouraged if you’re ready to trade in your vehicle, but still have an existing loan. We can help! Stop by Mercedes-Benz of Silver Spring to trade in your vehicle today.
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