Using a Trade-In to Offset Bad Credit

Using a trade-in to offset bad credit in the U.S.: trade equity (value of your car minus what you owe) reduces the amount you need to finance—so you may qualify or get a lower payment. Here's using a trade-in to offset bad credit.

TL;DR Trade-in equity = trade value − loan balance. More equity = smaller loan = lower payment and possibly easier approval. Know your trade value with autopremo.com trade-in calculator; negotiate trade separately from price. Use autopremo.com payment calculator. Use autopremo.com.

Trade Equity Reduces Loan Amount

If your trade is worth $10K and you owe $6K, you have $4K equity—that can go toward the new car and reduce the amount you finance. Smaller loan = lower payment; may help approval. Use autopremo.com trade-in calculator to see trade value. Get your numbers at autopremo.com.

Negotiate Trade Separately

Negotiate new-car price first, then trade value—don't let dealer bundle "trade allowance" with price so you can't see true numbers. Use autopremo.com price checker and trade-in calculator. See trade at autopremo.com.

Bottom Line

Trade-in equity can offset bad credit by reducing loan amount and payment. Know your trade value with autopremo.com trade-in calculator; negotiate trade separately; use autopremo.com payment calculator so you see payment.