Can You Trade In a Financed Car?

Couple sitting at sales desk at dealership

 

Are you curious about whether you can trade in a financed car or not? Well, the answer is yes! Whether you need an upgrade because your family’s growing or you want a model that fits your Salem driving style, you can trade in a financed car for lease. Keep in mind, however, that your loan balance doesn’t go away. It still needs to be paid off. Find out more about how does trading in a financed car work, and other options with Lum's GMC. Then contact us if you have any questions about interest rates, selling a car, credit scores, and more.

 

 

How Does Trading In a Financed Car Work?

Trading in a financed car around Newberg doesn’t have to bring you stress:

  1. Start by determining the remaining balance on the loan by reading your latest monthly statement.
  2. With our Value Your Trade tool or a website like Kelley Blue Book, you can estimate the value of your current vehicle. An appraisal will be made at a Newberg-area dealership to establish the vehicle’s worth.
  3. When trading in a financed car, your auto loan amount can be less than the trade-in offer. That leftover money can go towards purchasing a new GMC.
    1. For instance, if your loan amount was $7,000 but the dealer offers $8,000 for your current vehicle, that leaves you with $1,000 towards your next car.
  4. On the other hand, if you find your remaining balance is more than the trade-in offer when trading in a financed car, this is called negative equity. You can still trade in a financed car for lease, but either the balance has to be paid off first, or the remaining amount needs to be rolled over into your next auto loan.

What is Rolling Over a Loan?

How can you trade in a financed car with a balance remaining? When dealerships rollover your loan, they’ll pay off your old loan, no matter how much you owe. However, don’t get too excited as the price just gets added to the next car you buy. This allows you to pay the dealership for the old loan and new loan at the same time while driving the model that fits your needs around Hillsboro.

Explore Your Financing Options with Lum's GMC!

Now that you know how trading in a financed car works, explore our other car buying tips, so you’re prepared for the car buying process. If you have any questions about how to trade in a financed car for lease or your other options, our finance department is here to help!

 

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