If you own a vehicle that you bought with the financing, but are looking to trade in for a new one, then it is important to know what your loan balance is before you even walk on the dealership a lot.
A loan balance is a lot left to pay on your loan. Every loan you take will have a credit balance until the loan is paid off in full. Your credit balance changes on a daily basis because interest is added daily.
Excellent loan balance
Hopefully you will never find this article listed on your bank statement. An outstanding loan balance usually refers to an overdue amount. If you are late on your loan payments, you are probably looking to refer to an announcement of your outstanding loan balance. It could refer to just the loan payment that is overdue or the loan balance in its entirety.
Best loan calculator
If you can find your loan statement, you need to know a few details about your loan to calculate your loan balance. Use a traditional loan calculator and enter the remaining time on your loan, your monthly payment, and your interest rate. Then you will make a guestimate on your loan balance. Once all the numbers match, you have found your loan balance. Of course, you can also call your lender or visit their website to get an accurate statement of your loan balance.
Best loan balance calculator
Or contact the number you are looking for with a loan balance calculator.
Trading in a car with a loan balance
Typically, trading in a car is not a problem, even if you have a remaining credit balance. If the value offered on your vehicle is higher than the amount you owe, come out ahead. You can then pay off your loan and use the balance to buy your new car.
Some other options are there for you if you owe more than the trader is willing to pay for your trade-in. You have the option to pay off the remaining balance on your own, or you might be able to roll up your remaining balance into your newly acquired auto loan. Rolling over the balance will most likely put your head on your new car loan. You have to work hard to pay off the balance quickly.
Of course, the best way to avoid all of this is to just buy a vehicle that you can afford to pay before you trade it in a newer version. The grass can always be greener on the other hand, but adding hundreds or thousands of dollars to the price of your new ride is no fun.