Can You Trade in a Financed Car? The Pros and Cons – Advisebar

Can you trade in a financed car? You're driving around in your new car and you start to get a nagging feeling that maybe you made a mistake.

PROS:

You'll get a new car without having to pay for it upfront

You may be able to get a better interest rate on your new car loan

PROS:

PROS:

You can use the trade-in as a down payment on your new car

CONS:

You'll still have to pay off your old car loan

You may end up paying more for your new car than if you'd bought it outright

CONS:

If you don't have a good credit score, you may not be able to get a new car loan at all

CONS:

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