Can You Trade In a Financed Car?

Woman handing a man keys to a new vehicle

 

Yes, you can trade in a financed car, but your auto loan doesn’t just go away and will need to get paid off. Learn more about your financing options for trading in a car that still has a loan balance with the financial experts at the Ole Ben Franklin Motors finance center. Don’t hesitate to contact us if you have any questions about the financing or car-buying process like how to trade in a car with negative equity. We work to make your visit with us to be an enjoyable one. When you’re ready, check out our new or used inventory to find the vehicle that’s best suited for your Farragut commute.

How to Trade in a Car With a Loan?

  1. First, see how much you still owe on your loan. This amount will be listed on your monthly statement.
  2. Use our Value Your Trade tool to estimate your vehicle’s current value. Remember, this is just an estimate, and you won’t know your vehicle’s value until our certified technicians can inspect it.
  3. If your remaining balance is less than the trade-in offer, then you can use that money to put towards your next vehicle.
  4. However, if your balance is more than the trade-in offer, this is called having negative equity. You can take that balance and roll it over onto your new loan or pay it off before purchasing your next vehicle.

What does rolling over mean? This is when the dealership pays off the remaining balance of your loan. They’ll take that balance and add it to the new loan, so you’re essentially paying off the old and new loan at the same time.

Get Additional Finance Tips at Ole Ben Franklin Motors

Have additional questions like how to trade in a car with negative equity, don’t hesitate to give us a call. When you’re ready to trade in your vehicle, check out our virtual inventory to find the new or used vehicle for sale that checks off all your boxes. Explore our specials and get pre-approved for financing today! Let the team at Ole Ben Franklin Motors be your go-to destination for all of your car-buying and automotive needs! Also, be sure to check out our online guide to learn if an extended warranty is worth it, if you can trade two cars for one, and more.

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