Can You Trade In a Financed Car?

handing keys to customer
 

Is trading in a financed car doable if you live in Woodway? Not only is it possible but easier than ever! Remember that just because you trade in a financed car it doesn’t mean that the balance goes away. You’re still responsible for paying off that loan, but our finance department will help make the process easy. At Allen Samuels Dodge Chrysler Jeep Ram FIAT, we’ll go over everything you need to know about trading in a financed car and how to trade in a financed car for a lease. 

How Does Trading In a Financed Car Work?

To better explain trading in a financed car, we’ve broken it down into easy-to-follow steps. Here’s how you can get started: 

  1. Find out how much you still owe on your loan. Usually, you can find this number on your monthly statement.
  2. Get an estimate on the value of your current vehicle. While this is just an estimate, the number will be more precise once the vehicle is inspected by the dealership physically. We can help you find out what your vehicle is worth with our trade-in value tool
  3. Compare the difference of the amount left on your auto loan to the estimated value of your car. If you owe $5,000 but the dealership offers you $6,000, then you will have $1,000 left after paying off your loan to put towards a new vehicle. 
  4. If the remaining loan balance is greater than the car’s estimated value, then you will still owe money on your car. This is what’s known as negative equity. 

If you find that you have negative equity, you have two options: you can pay off the remaining balance before purchasing your next car, or you can roll the balance over to your next vehicle with a Temple dealership like Allen Samuels Dodge Chrysler Jeep Ram FIAT. 

giving keys

What Does it Mean to Roll Over a Loan?

When you roll over a loan, the dealership will pay off your loan on your old vehicle. However, that price gets added on top of your new loan for the next vehicle you purchase. This means that you will be paying off your old loan and your new loan at the same time. So, can you trade in a financed car? Absolutely, but it’s important to know the loan amount and trade-in value of you trade in a financed car for a lease. 

Trade in Your Car at Allen Samuels Dodge Chrysler Jeep Ram FIAT

Still unsure if you can trade in a financed car? What type of deal you get depends on what your Gatesville vehicle is worth and how much you still owe. Luckily, the finance department at Allen Samuels Dodge Chrysler Jeep Ram FIAT has the expertise to make the process stress-free. Contact us if you want to trade in a financed car for lease or for more car buying tips and tricks. Let us help you make the car trading process easy!

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