Can You Trade In a Financed Car?

Can you trade in a financed car and buy another vehicle? Yes! Trading in a financed car is a real option for many Amber drivers, but it’s important to keep in mind that the loan you currently have won’t be going away. The deciding factor for many drivers looking to trade in their current financed vehicle often comes down to the vehicle’s value, and our finance team is here to explain more about the process.

How Does Trading In a Financed Car Work?

Trading in a financed car often depends on the value of your financed vehicle. Vehicles depreciate in value over time, but your vehicle may be in a good spot to sell if it’s still retaining a good amount of value. Here’s a quick guide to learning the current value of your vehicle:

1. Take the total remaining balance on your car loan, and then set up a value your trade tool for an estimate on your current vehicle. Plug in all of the needed information for a rough estimate for your vehicle.
2. Look at the numbers and see how much your estimated trade-in could be worth. If the estimate is greater than your remaining loan amount, you’re in a very good spot to sell your current vehicle, allowing you to pay off the remainder of the loan at the same time. Just be aware that you have an estimate, and you may see a decrease in the actual trade-in amount when you connect with a dealership due to things like wear and tear, etc. This will vary.
3. If your estimate is for less than what you currently owe on your vehicle, then you’re considered underwater on your car loan, and you have negative equity. You could still trade in your current vehicle, but you’ll still have to pay off whatever is left on the car loan before finalizing. And again, your trade-in vehicle may be worth less than what’s estimated based on factors like wear and tear.

What Does “Rolling Over” A Loan Mean?

Rolling over a loan is when a dealership says they’ll pay off your old loan no matter how much you owe. This is too good to be true, and it only means that your old loan will be added on top of your new loan as a total amount.

Exploring Trading in a Financed Car with John Holt Auto Group, Inc.

How does trading in a financed car work when you shop with John Holt Auto Group, Inc.? We make the car-buying process as easy as possible for our drivers. Looking to trade in a financed car for a lease? We’ll work with you to find the best options in Chickasha! Contact us online or call us today at (405) 928-1487 to learn more about your online financing options!