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Posted in Auto Loans
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Bigbird101

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How do i turn my vehicle back in for a cheaper one with lesser years to pay it off

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If you turn the vehicle into the dealer, you won't receive as much money as a personal sale because the dealership has to make money and resell the vehicle. If your current loan is greater than the purchase price of the vehicle you turn in; the loan difference will be added to the new loan. It's possible you may not end up with a cheaper payment.

Top Contributor
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Turning a vechile back in would be a lot like defaulting on a loan and in that case, you may not be securing a lower cost loan and cause severe damage to your credit.   If you are trading this vehicle in on a different vehicle and thus a new loan, then any amount they offer you will go to your original loan and any balance you still owe will be added to the new loan and also to the interest rate of this new vehicle.  Depending upon the condition of the vehicle and the interest rate you are currently paying, it could be wise to consider refinance.   This is where they provide you with a new loan on the amount owed and should always result in a lower interest rate if you qualify.  

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