Can You Trade In a Financed Car?

If you’re hoping to upgrade your Fort Worth travels, you may be wondering, “Can you trade in a financed car?” Absolutely, you can trade in a financed car for a lease or new purchase at Shottenkirk Toyota of Weatherford. However, it’s important to keep in mind that the loan on your vehicle doesn’t go away once you trade it in, you’re still responsible for paying it off. Luckily, our financiers are here to guide you through every step of the way when trading in a financed car. Learn more with our expert team below!

How Does Trading In a Financed Car Work?

So, how does trading in a financed car work? Follow these simple steps below when trading in a financed car:

  1. Determine what you currently owe on your loan. You can typically find this listed on your monthly statement. 
  2. Use our Value Your Trade tool or one from a service like Kelley Blue Book to secure an estimate of your vehicle. You’ll want to keep in mind that if you plan to trade in a financed car for a lease or finance deal, this value is simply an estimate. Later on, the buyer will inspect your vehicle and make an official offer. 
  3. If the remaining loan amount is less than the trade-in offer, you’ll have money leftover in your budget! This will allow you to bolster your down payment in a stress-free way.
  4. If the balance of your current loan is more than your trade-in offer, then you’ll still owe money on the car. In this scenario, you have negative equity – sometimes referred to as being “underwater” or “upside-down” on a loan. You can pay down that balance in full before you upgrade, or you can roll that balance over into your next loan with the dealer. 

What Does “Rolling Over” A Loan Mean?

Rolling over a loan is when a dealership agrees to pay off your old loan, no matter how much you owe. While this can help you get out of your current loan and into a fresh set of wheels for your commute from Azle to Mineral Wells, that balance will be added to the price of your next purchase. This allows you to pay back the old loan and the new loan all at once. 

Let Shottenkirk Toyota of Weatherford Guide You to Your Next Vehicle.

Now that you can confidently answer questions like, “Can you trade in a financed car?” and “How does trading in a financed car work?” you’re ready to shop for your upgrade like a pro! You can browse our wide selection for a new-to-you ride or check out our new vehicle specials for intense savings! Apply for financing online to get ahead of the game, or contact us with any questions!

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May 23, 2024
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