It might be a good idea to see if you are able to trade in a car that you have financing for at a buy-here-pay (BHPH) dealer for a brand new vehicle. You can trade in a BHPH car, but there are some considerations. Let’s take a closer look before we search for buy here, pay here car lots close to me, get the facts?
Negative Equity: Depending on the current market value of your car, the dealership will usually offer you a trade in value for your used vehicle. If you owe more than your car is worth, you have negative equity. This is a problem if you trade in a BHPH car because they often have high loan rates which can lead to negative equity.
Before you trade in your BHPH vehicle, you must know how much you will have to pay. This sum includes interest and your car’s total debt. If you have negative equity, you will also be responsible for the difference between your trade-in value or the payout amount.
Acceptance of a Loan: You must accept a loan if you are financing a car or trading in your BHPH vehicle. If you have bad credit or a history missing payments on your BHPH loans, this can make it more difficult for you.
Dealer Policy: Not every dealership will accept trade-ins of BHPH vehicles. Some dealerships might not allow it while others will only accept fully-paid-off BHPH cars.
If you are considering trading your BHPH vehicle, it is important to research other options. Refinancing your BHPH loan may be an option if you want to reduce your interest rate or negative equity. You can also inquire about the policies of different dealerships to see if they will accept BHPH cars as trade-ins.
Research a dealership that is willing to work with you and your situation if you are considering selling your car. You can then trade in your BHPH vehicle and drive a new vehicle that suits your needs.