Currently on my second car with a Toyota dealership and would like to change to a Honda for my next one.
How does car financing work and what are my options for returning my Toyota and moving over to Honda? Is it possible to transfer value from the car I’m currently financing into a deal with Honda or would I need to completely end things and return the Toyota and start fresh with Honda?
In: Economics
For car financing, you can get a loan from your bank or finance through the dealership (they usually have a bank they partner with). The loan isn’t attached to any dealership – you can buy a car there and then never have anything to do with them again.
You can trade in your old car for a new one regardless of what the make is of the original (i.e., you can trade in a VW at a Ford dealership if you want). If you still owe money on the car, bear in mind that the trade-in value might not cover the amount you still owe.
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