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Can You Trade In a Financed Car?

Excited Couple Reviewing Trade in Offer with Salesman
 

Can you trade in a financed car? Certainly! It’s entirely possible to trade in a financed car. However, it’s important to note that trading in your car doesn’t automatically eliminate the loan on it – you’re still responsible for paying off the remaining balance. If you require information about topics such as car loans, interest rates, selling, leasing, credit scores, and more in , feel free to reach out to us. We’re here to assist!

 

 

How Does Trading In a Financed Car Work?

So, can you trade in a car you’re financing? Yes, indeed! Check out the details below:

  • Calculate the Outstanding Loan Balance: Typically, your remaining loan amount can be found on your monthly statement.
  • Estimate Your Vehicle’s Value: Utilize tools like our Value Your Trade feature or reputable resources like Kelley Blue Book for an initial value assessment of your current vehicle. Remember, this estimate is preliminary, and the dealership will determine the actual value after a physical inspection.
  • Compare Loan Balance and Trade-In Offer: If the remaining auto loan balance is less than the trade-in offer provided by the dealership, the surplus amount can be applied toward your new car purchase in .
  • Managing Negative Equity: If the remaining loan balance surpasses the trade-in offer, this results in negative equity. You have a couple of options. You can clear the balance before purchasing your next car. Or you can explore the possibility of rolling over the negative equity into your next auto loan with the dealership. This enables you to address the balance incrementally within the new loan terms.

Remember, trading in a financed car involves multiple factors, so it’s advised to consult with our experts at Kempthorn Motors for personalized guidance.

Can You Trade-In a Car You’re Financing: What Does “Rolling Over” A Loan Mean?

Loan rollover occurs when a dealership offers to settle your existing loan balance, regardless of its amount. While this may initially seem advantageous, it’s essential to understand the implications. The dealership essentially combines your old loan balance with the new car’s cost, integrating both into the financing arrangement for your upcoming vehicle. Consequently, you’ll be repaying both your previous loan and the new vehicle’s loan simultaneously, as part of your new loan terms.

Rely on Kempthorn Motors for Your Next Vehicle!

When the time comes to trade in your financed car for a lease or to drive away in a new vehicle, don’t forget to explore our enticing new vehicle specials available in Canton. Additionally, take advantage of our valuable car buying tips to equip yourself for your upcoming purchase in . Start the process by applying for financing online to kickstart your journey!

 

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