How to Trade in Your Car Without Paying Anything

There are many different reasons to trade in your current car for a replacement car. The big question: Is there an outstanding loan on your current car? You can work with a reputable dealership and your lender to trade in your car without paying anything.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Car title Identification for financing

1. Call your bank or auto loan company. Ask them if you're allowed to do an auto-payoff of your loan through a car dealership. Ensure that there are no early pay-off penalties. If they say it's acceptable for the dealer to pay off, proceed to the next step.

2. Write a list of features, accessories and items you'd like in a replacement car. For example: air conditioning, power steering, anti-lock brakes and so forth. This will let you know what type of car you'll be seeking.

3. Visit several auto dealerships in your area with your wish list. Make sure the dealership will do a loan payoff as part of your trade-in for the replacement car you select.

4. Obtain financing with the dealership after you select the car you want. Get in writing from the dealership that they will do the loan payoff in a timely manner.

Tips & Warnings

• Shop around at several dealerships.
• Some dealerships will hold off on doing the loan payoff for up to three months. Don't allow them to do this because you'll be responsible for continued loan payments.

References

• Insider Car Secrets

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