* You will need to pay off the remaining balance on your loan. This can be done by either paying the lender directly or by rolling the loan over into your new car loan.
* You may have to pay a prepayment penalty. Some lenders charge a prepayment penalty if you pay off your loan early. This fee can vary from 1% to 5% of the remaining balance on your loan.
* You will need to get a lien release from your lender. This document states that the lender no longer has a lien on your car. You will need to present this document to the dealership when you trade in your car.
* Your credit may impact the terms of your trade-in. If your credit is not good, you may have to pay a higher interest rate on your new loan. You may also have to make a larger down payment.
If you are considering trading in a car that you are currently financing, it is important to talk to your lender first to find out what the terms of the trade-in will be. This will help you to make an informed decision about whether or not trading in your car is the right choice for you.
