your car, and you have to pay off your loan.
It is a perfect storm of issues that can make trading in a car a complicated process. But the big question remains: How do you avoid those problems? The answer lies in understanding exactly what those issues are so that you can work around them as much as possible.
The Car You Bought Is Too Old
Many people mistakenly think they’re eligible for any kind of trade-in because their cars aren’t “vintage,” but most lenders will only let them trade in an old car if it has less than 100,000 miles on it or was driven less than 10 percent over its manufacturer’s warranty period (usually between three and five years). This means that most new cars under 100,000 miles outnumber old ones by about 3–1! So forget about trading your 2015 Honda Accord into the dealer with 13,456 miles on it—you won’t get anywhere near enough money back for the hassle involved. In addition to getting stuck paying interest on a used vehicle valued at thousands less than you would have paid had you bought something newer still within its warranty period (and without all the extra costs associated with buying one), this also makes meeting your financial goals all but impossible since monthly payments must be based on what other dealers offer for similar vehicles—not how much cash could be made selling yours. These numbers should not be surprising given that roughly 75 percent of financing