Owing Money On Your Trade-In


Owing Money On Your Trade-In

Owing money on trade-in is also known as negative equity. You will often hear this term at a dealership when you try to trade up your vehicle for a newer one.  And yes, it is possible to upgrade your vehicle while you still owe money on your trade-in meaning If your trade is worth less than what you owe, then the difference is called your negative equity. And again, The money you owe on your trade will also depend on the length of time you have had the loan. The longer you’ve been paying on the loan, obviously the smaller the balance owing. As much as possible, you want to avoid carrying over the amount of money you owe on your trade-in into a new auto loan. Doing so gives you a higher payment call that may require a longer term on the new loan.

Owing Money On Your Trade-In

There are three ways to deal with negative equity. Firstly, paying cash to rid of the money you owe on your trade- in is best. Secondly, If you are in the market for a new vehicle and  there are manufacturer’s rebates or cash incentives being offered then this would be an ideal time to upgrade providing the difference between your trade in and negative equity is within the rebate amount. Thirdly, lender’s will allow some room to accommodate the negative equity where you can refinance the balance owing by adding to the new loan..It is important to note that in order to qualify for this financing, you have to show good payment history on your current loan and an overall healthy credit bureau.

Owing money on your trade in

Once you know how much the trade in value is from the appraisal, you can then start working on finding out what you owe on your trade-in. The appraisal is based on the condition and kilometer of the vehicle, as well as any declarations, the year and model. Black book on-line will give you an idea of what your trade in value is for your trade. So keeping your vehicle in mint condition is to your advantage in getting a better trade-in value if your thinking of upgrading before paying off your current loan.

For a same day approval and a free consultation, fill out the form to your right.

Auto Financing With Bad Credit


Auto financing With Bad Credit

Car Financing For People with Bad Credit in BC
How do I know if I qualify for auto financing?

One common concern in auto financing with bad credit  is how do I know if I qualify for a car loan? this question might come to mind if your current vehicle is on its last leg, and or you have had previous unfortunate circumstances happen to you where your credit has suffered for example, a job cut back or job loss, divorce, health issues that prevented you from working, bankruptcy or even new to the country and therefore you find yourself wondering if you qualify for auto financing with bad credit.

You might also know by now that there are numerous places advertising for car financing for people with bad credit. But how do you shop for a bad credit auto loan? if you do qualify, how do you know you are getting the best rate? The thing with auto financing with bad credit  is that it really is a case by case scenario. It all depends on a few factors pertaining to your current and previous history with creditors. Your current job status and ability to afford an auto loan. Regardless, our approval rate is high and we can confidently get you the approval.

Auto Financing For People With Bad Credit

The first thing I would suggest to anyone who is looking for car financing with bad credit is to be realistic. It’s like loaning money to a friend who has not paid you back. You will be cautious. It is the same for bad credit auto loan lenders. Regardless of what the situation is or was with you credit, caution is applied to the amount you can borrow and the interest rate they will loan you once they see there is default reporting on your credit bureau.

The interest rate is a range. This is based on an individual situation. But having said this, a credit specialist , such as myself, is your best bet in getting the best rate possible.

Auto Financing for Bad Credit BC

So some info to keep in mind if you are needing an auto loan asap and you have bad credit.

-Do your research if you can to find out roughly what interest rate you qualify for. I say roughly because often the vehicle year and kilometer could help get you a better rate. But mostly so you don’t end up with a higher rate than what you can qualify for. This applies to those who may have some established credit but not quite sufficient enough to qualify for the prime rates.

– try not to go for the most expensive car you see. There are lots of good quality near new vehicles you can qualify for. The objective is to get a good reliable vehicle that is within your means while re-establishing your credit. It is important to work with the right credit specialist oppose to a random business manager at a dealership to help you meet these objectives.

If you are discharged or still in bankruptcy follow the link and read my blog for more insight.

– Be sure to do your due diligence when buying a used car. I have listed some helpful tips that can guide your purchase.

I hope you find this helpful. If you need a car financing and you live in British Columbia, fill out the form now to your right for a same day approval.