Can You Trade In a Financed Car?

At Terry Labonte Chevrolet in Greensboro, we often get asked questions like “Can you trade in a financed car?” or “Can you trade in a financed car for a lease?” The answer is yes! However, keep in mind that your loan on that vehicle does not go away once it’s traded in for a new car; you will need to pay off the rest of the balance. Our finance team can walk you through the process and answer questions like, “How soon can you trade in a financed car?” Read on below!

Can you Trade in a Car You’re Financing?

Absolutely, here is how:

1. Determine the remaining balance on your loan. It is typically listed on your monthly statement.
2. Value Your Trade in Winston Salem to get the estimate on the current value of your vehicle. This is only an estimate, your vehicle will still need to be inspected at the service center in your trade-in dealership.
3. If the remaining amount of your auto loan is less than the trade-in offer from the dealership near Kernersville, you will have money leftover to put towards the next vehicle.
4. If the remaining balance of your auto loan is more than the trade-in offer, you will have negative equity and still owe money on your vehicle. However, you can pay off the remaining balance in full before purchasing your next car or you can roll over the balance into the next auto loan.

How Soon Can You Trade in a Financed Car?

So, how soon can you trade in a financed car? Well, you can do it once it’s fully paid off or you can do it while you still have a remaining balance, but you will need to roll over the loan if you use the latter method. Rolling over a loan is when the dealership offers to pay off your old loan no matter how much you owe. Want to know more about trading in your car? Once the price gets added to the new loan on your next vehicle you are buying, you will have to pay the dealership back for the old loan at the same time that you pay off the new loan of the new vehicle.

Trade Your Vehicle at Terry Labonte Chevrolet!

Now that we’ve answered all of your questions, “Can you trade in a financed car?” and “Can you trade in a financed car for a lease?” Contact us at Terry Labonte Chevrolet outside of High Point to set up an appointment, and be sure to check out what is a good interest rate for your next loan! We are always happy to offer any insight and car-buying tips you need in order to make a confident decision for your next vehicle.