Can You Trade In a Financed Car?

If you’re ready to trade in your car for something new, you may be wondering, “Can you trade in a financed car?” You absolutely can! Trading in a financed car can be slightly different than trading in a car you own outright, but it can be done when you team up with expert financiers like the ones here at Underriner Motors. It’s important to keep in mind that your old loan balance doesn’t go away when you trade in a financed car for a lease or purchase. So, you’ll still need to pay off that loan. However, we’re here to help you discover all of your options when it comes to trading in a financed car. Read on below!

How Does Trading In a Financed Car Work?

So, how does trading in a financed car work? The process can be handled smoothly when you follow a few simple steps. Get started trading in a financed car with the instructions below:

1. Start by figuring out how much you owe on your current loan. This is usually listed on your monthly statement. 
2. Use our Value Your Trade tool or another trusted source like Kelley Blue Book to determine the approximate value of your car. Remember, this is just an estimate, nothing can be finalized until the vehicle is evaluated at the dealership. 
3. If the balance on your loan is less than the trade-in offer, you’ll have money left over to go towards your new Bozeman commuter. 
4. If your loan balance is higher than your trade-in offer, you’ll still owe money on the car (this is called negative equity). You can pay off the balance before you sell your vehicle, or you could potentially roll over the balance into your next loan at the dealership.

What Does “Rolling Over” A Loan Mean?

When you roll over a loan, it means the dealership will pay off the balance on your Laurel ride so that you’re free to make the sale. From there, you can trade in a financed car for a lease or new purchase. However, this debt doesn’t just disappear, it will be added to the new loan for your next car. So, you’ll pay the dealer back for your old loan and new loan all at once. 

Team Up With Underriner Motors for Your Next Vehicle

Now that you can answer the question, “Can you trade in a financed car?” you’re ready to shop like a professional. When the time comes, you can trade in a financed car for a lease or new finance deal at Underriner Motors with ease. Along with answering questions like “how does trading in a financed car work?” our team offers an incredible selection and tons of savings. Explore our new vehicle specials for a chance to save big on your Miles City upgrade. Contact us today if you’re ready to take the next steps!