Can You Trade in a Financed Car?

Happy driver in his newly purchased car

 

Are you tired of your current car, truck, or SUV and curious as to whether you can trade in a financed car? The short answer: Trading in a financed car is absolutely possible and you can put the money towards a new lease, a down payment on a new vehicle, or just straight cash. Just remember that trading in a financed car for a lease or a new model purchase doesn’t get rid of the loan on your previous vehicle – you still have to pay off the balance. 

Find out how trading in a financed car works with the finance experts at Midway Auto Dealerships below! Have any questions along the way? Don’t hesitate to contact us online to learn more about credit scores, interest rates, or auto loans!

How Does Trading in a Financed Car Work?

  • Calculate Remaining Loan Balance: Determine the remaining balance on your loan. It is typically listed on your monthly statement. 
  • Get an Estimate of Your Vehicle’s Current Value: Use our Value Your Trade tool or one from a service like Kelley Blue Book to get an estimate on the value of your current vehicle. Note that this is simply an estimate, and it’s only once the vehicle has been physically inspected that the dealership will establish what the car is worth. 
  • Determine If You Have a Higher Trade-In Offer: If the remaining amount of your auto loan is less than the trade-in offer from the dealership, then you’ll have money left over that will go towards purchasing a new car from the dealer.For example, if you still owe $7,000 on your car in Hastings, and the dealer offers you $8,000 to buy the car, the loan can be paid off and you’ll have $1000 to contribute towards your next car. 
  • Or Determine If You Have Negative Equity: If the remaining balance of your auto loan is more than the trade-in offer, then you’ll still owe money on your car–this is called negative equity. You can pay off the remainder in full before buying your next car, or you may have the option to roll over the balance into your next auto loan with the dealer.

Trade-in a Financed Car for Leases or New Models at Midway Auto Dealerships!

Is trading in a financed car the best course of action for you financially? Then you ought to trade in your vehicle at Midway Auto Dealerships near Holdrege! Our team members are ready, willing, and able to help you search for new vehicle specials and apply for financing.

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