Can You Trade In a Financed Car?

If you’re asking yourself, “Can you trade in a financed car?”, you’ll be pleased to know that the answer is yes! Your next question might be, “How does trading in a financed car work?” Learn about your options for trading in a financed car , how you can trade in a financed car for a lease, and more with Tim Short Chrysler of Middlesboro’s finance center near Pineville.

How Does Trading in a Financed Car Work?

You might be asking yourself, “How does trading in a financed car work?” Trading in a financed car breaks down into a few simple steps: 

1. When you want to trade in a financed car for a lease or finance plan, start by determining how much you currently owe on your vehicle.
2. Using our Value Your Trade tool, enter some basic information about your car to receive an estimation of the value of your car. It’s important to note that this is only an estimate. Once your car has been physically inspected by the dealership, they will be able to tell you exactly how much your car is worth.
3. If the remaining amount you owe in loans is less than the worth of your vehicle, you can use the additional money toward purchasing a new vehicle. Here’s an example: if you owe $7,000 on your car in Harrogate, and the dealership offers you $10,000 for it, you can pay off the loan and use the remaining $3,000 towards your new car. 
4. On the other hand, if the remaining balance of your loan is higher than the dealership’s offer, you will still need to pay off the remaining balance in full before you can purchase a new vehicle. This is referred to as negative equity. However, the dealership may also offer to roll over the balance into your next auto loan.

Can You Trade In a Financed Car With an Existing Loan?

Another option is having your auto loan rolled over. This means that the dealership will pay off your old loan, no matter how much you owe. However, you are still obligated to pay off the remaining balance. In this case, the price will be added to the new loan on the next car you purchase, so you will have to simultaneously pay the dealership back for both the new and old loan.

The Finance Team at Tim Short Chrysler of Middlesboro is Here to Help

Our team of dedicated experts are here at Tim Short Chrysler of Middlesboro are here to help you, whether you’re looking to trade in a financed car for a lease or have more questions about trading in a financed car in general. Feel free to contact us, or stop in at our dealership near Ewing. Make sure you check out our specials online to get a fantastic deal on your next Chrysler, Dodge, Jeep, Ram.