Can You Trade In a Financed Car?

Are you wondering about trading in a financed car near Guymon, OK? You can trade in a financed vehicle, but its loan won’t go away because you’ve traded it in. If you’re asking, “Can you trade in a financed car?” you’ve come to the right place. In the following overview, Duncan Chevrolet Co., Inc. will highlight how trading in a financed car works. Learn more below and contact our finance team with any additional questions!

How Does Trading In a Financed Car Work?

Learning how trading in a financed car works can seem complicated for any Amarillo buyer. Below, we’ve provided the steps for trading in a financed car:

1. Determine the remaining loan balance, you can find this information on your monthly statement.
2. Use our Value Your Trade tool to determine your current vehicle’s value. Remember that this is only an estimate and once the vehicle has been physically inspected we’ll establish what the car is worth.
3. If the remaining amount of your auto loan is less than the trade-in offer from the dealership, you’ll have money left over that can go towards purchasing a new car for the dealer. For example, if you still owe $7,000 on your Dalhart-area ride and are offered $8,000 to buy the vehicle, the loan can be paid off and you’ll still have $1,000 to contribute towards your next model.
4. As you’re trading in a financed car, if your auto loan balance is more than the trade-in offer, you will still owe money. This is known as “negative equity.” You can pay off the remainder in full before buying your next model or you can roll over the balance into your next auto loan with the dealership.

What Does “Rolling Over” A Loan Mean?

Now that you know you can trade in a financed car, it’s important to see what rolling over a loan can do. This is when the dealership says they will pay off your old loan no matter how much you owe. However, the price will be added to your new loan on the next model you purchase, meaning you will pay the dealership back for the old loan as you’re paying off the loan on your new vehicle.

Find Your Next Stratford Ride at Duncan Chevrolet Co., Inc.!

We hope you found this overview exploring how trading in a financed car works helpful. If you’re ready to trade in your current vehicle or get behind the wheel of a new Chevrolet turn to Duncan Chevrolet Co., Inc.! Explore our new vehicle specials to see what catches your eye. You can also start the process by getting pre-approved for financing today. Discover your next Guymon, OK ride with Duncan Chevrolet Co., Inc.!