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Should you trade in a car that is paid off?
Ideally, you want to keep a car for a few years after it is paid off before you trade it in. This way, you get to enjoy the benefits of ownership. If you can’t or aren’t willing to wait that long, at least make sure you have positive equity in the loan.
What happens to your car loan when you trade it in?
Your car loan doesn’t disappear if you trade in your car. However, the trade-in value of your car becomes credit towards your loan. This credit might cover the whole balance. If it doesn’t, your dealer will roll over your loan, combining the deficit with the amount owing on your new car.
When should I replace my car Reddit?
Replace it when the cost to repair it (including work you can put off for now but know it will need soon) exceeds the KBB value. At that point, even if you really love your old clunker, you could replace it with an unbroken version of the exact same car cheaper than you could repair it.
What’s considered high mileage on a car?
What is considered high-mileage? Typically, putting 12,000 to 15,000 miles on your car per year is viewed as “average.” A car that is driven more than that is considered high-mileage. With proper maintenance, cars can have a life expectancy of about 200,000 miles.
When should you wait to trade in a new car?
When You Should Wait to Trade In. When you purchased a new vehicle very recently. As soon as you drive a new vehicle off the lot, it loses around 10 percent of its value and up to 20 percent of its value within the first year! If you purchased a new, not used, vehicle within the last year and are thinking of trading it in, just don’t.
What happens if you don’t pay off your car before trading it in?
If you are not able to pay off the remainder of this loan, it will end up getting added to the amount of the new loan on your new vehicle. This will either make your new loan longer or your payments larger than they would have been if you had waited until you paid off your vehicle before trading it in for a new one. 2
How much would it cost to drive a car until it dies?
A few years back, I was inspired by a story my friend shared with me. She purchased a brand new car for $16,000, and drove it until it died. It lasted her family 14 years! That’s about $1200/year or $100/month. If you have a loan on something like that, you’re looking at even more.
How much value does a new car lose when it’s sold?
As soon as you drive a new vehicle off the lot, it loses around 10 percent of its value and up to 20 percent of its value within the first year! If you purchased a new, not used, vehicle within the last year and are thinking of trading it in, just don’t.