What are your options if you see a car you’d love to drive, but you’ve still got a ways to go on your current lease? How about if interest rates are much lower now than they were at the start of your lease term? Fortunately, you’re not locked into your lease until the end of the term! Most dealerships will allow you to turn in a lease early for a small early termination fee.
In the guide below, the auto finance experts at York Chevrolet Buick GMC, Inc. finance center will walk you through how to end a car loan or lease early, how to trade in a financed car, and how to refinance for a lower interest rate.
Whether you go through with the full term or end your lease early, the process is pretty much the same. All you need to do is stop by our dealership neater Cloverdale with the vehicle, and let us take care of the rest! Keep in mind that turning in a lease early may incur penalties, depending on your lease agreement. You may be expected to pay:
Even if you’ve financed your car, it’s still possible to trade it in when you still owe money on the loan. This is easiest when you have “positive equity”; if your car’s present value is more than the amount you owe, you can apply the difference toward the cost of a new car.
If you have what’s known as “negative equity” or are “upside-down” on your car loan, your car is worth less than what you currently owe. In this case, you’ll be required to pay off the difference when trading in a financed car. Your dealership may be willing to roll this added cost, along with the remaining amount on your loan, into a new loan. Before visiting your dealership, it’s a good idea to research your car’s current market value at Edmunds or Kelley Blue Book, or with our Value Your Trade tool.
Interest rates tend to fluctuate, so you may notice that rates have gone down significantly since you applied for your car loan. So, is it worth it to refinance? Even a drop of just a couple percentage points can translate to major savings over the course of your loan term! Refinancing makes it possible to access those new lower rates while you pay off the remaining balance. You should consider refinancing your car loan if:
At York Chevrolet Buick GMC, Inc., we strive to make car buying transparent and stress-free for drivers across Coatsville. Use our payment calculator tool to find a car in our pre-owned or new inventory that fits your monthly payment goals, or instantly value your trade online. Questions about trading in a financed car or ending a lease early in Plainfield? Contact us with your car-buying questions and we’ll be happy to assist!