Can I trade my car if it is not paid off yet?

[Anonymous]

I got toyota corolla LE Plus, fully loaded. I still owe $20k on it, but within 6 months from now it will be like $13k, can I trade it in with that amount owed? I'm thinking about Lexus ct200h F Sports. I check the trade in value of my car from Kelly Blue Book it says 14k trade in value. Can someone help me to calculate, if the lexus ct200h F Sport cost 40k and then my car is 14k, how much do I still owe to the dealer? and that 14k I still not paid it off.

[Hoya08]

Sale Price of Lexus: 40k

Trade-in: -14k

Trade-in Loan Balance: 14k

Total owed for Lexus: 40k - 14k + 14k = 40k

[Anonymous]

I love the look of the ct200 F. I also considered trading in my camry for one. If you're able to afford the loan, i say do it while you have positive equity on the corolla. You may also want to look around for L certified cars.

P.S. White is the best color

[jim44]

It will be more like this:

Cost of Lexus =/- 40K

- Trade in value (determined by the dealer)

+ dealer fee (if any)

+sales tax (unless trade down or even trade)

=net sale price

+ Amount owed on trade loan

=amount due.

You can approximate the price the Lexus will cost you but until you're ready to trade and buy you won't know the exact cost. 

BTW  Those Lexus cars are nice.  They hold their value too.  Good Choice!

[StartingOver10]

Instead of trading, why don't you sell the current vehicle?  You will have a much better shot at negotiating a good price on the Lexus if you go in without trading in anything with negative equity.

Sell your current vehicle to CarMax - and bring the difference in cash. Or sell it retail and be prepared to bring in the difference in cash, but it will be a lot less cash if you sell it retail.

If you are worried about selling it, then make a large extra principal payment to bring your negative equity down before you consider trading.

The one thing that dealers notice when you walk in with large negative equity to trade into another vehicle: they know you are desperate and it effects your new deal tremendously in a bad way. Put yourself in a powerful position by not bringing in $6k of negative equity to the new deal.

[jim44]

Excellent advice Starting Over.  However the OP should consider sales tax savings by trading vs selling outright. Unless he lives in a state with no sales tax such as Delaware.

[Anonymous]

Thanks for the replies, probably going to keep this car. This is my first owned car ever, I got a co-signer at first but after 7months i refinanced it and now it's on my own. Let just  say it will have sentimental value