Yes! You can certainly trade in a buy here pay here (BHPH) car if you meet these two requirements:
- You have already paid-off the car
- You have equity in the car
Conversely, if the car you are trading is known as upside-down (you owe more than the vehicle is worth) usually the dealer will not accept the vehicle for trade-in. However, there are ways negative equity can be eliminated and you can get yourself out of the upside-down scenario.
Trading In a BHPH Car With Equity
Firstly, check the trade-in value of the car to ensure you are getting a deal. Regardless of how you obtained the vehicle, the trade in value is normally similar – so, get an idea of the trade-in value of your vehicle. Often people will go to a couple of dealerships to see what the average trade-in value is. To be totally prepared to trade in your BHPH car, you need to do these things:
- If you have the cars service records, bring them in. It is not mandatory but shows you have maintained the vehicle well, potentially increasing the trade-in value
- Clean both the interior and exterior of the vehicle. At the very least ensure it looks presentable to others
- Take care of fixing very simple issues and repairs. Also, make sure basic levels of car maintenance are current
- Wait until the backend of the negotiation process to discuss the trade-in. That way you can focus on that part of the deal
Trading In a BHPH Car With Negative Equity
When you are facing a situation when your BHPH car is upside-down or when you have negative equity in your vehicle, there are three options available:
- If it is not essential you get a new vehicle straight away, playing the waiting game and waiting until there is equity in the vehicle is a good idea
- If you are in a position where you cannot wait, your next choice is to pay off the negative equity (pay the difference between what is owed and what is the value of the car)
- Although this is not an option with many lenders and dealers – it may be possible to roll over the current negative equity in your vehicle into the terms of your new loan. You have to recall this does not eliminate the negative equity, it will just incorporate the monies owed into the new loan
Is Trading In A BHPH Car Right For Me?
As long as you have equity in your vehicle, it will make no difference if the car is a BHPH car as long as you meet the requirements of the auto dealership you are purchasing from. If you think your credit may prevent you from obtaining a new vehicle, a Buy Here Pay Here dealership can help get you financed and into a new car that meets your needs.
If you would like to find a used car dealership in Phoenix that knows how to take care of their customers, please visit InPowerMotors.com. We have a huge list of 500 down (O.A.C. – On Approved Credit) used cars for sale.