Can You Trade In a Financed Car?

Woman handing over car keys
 

For those asking, “Can you trade in a financed car?” the answer is, “Yes!” You can certainly trade in a financed car, but it’s good to note that the loan on your existing vehicle will carry over to the new one. Let’s learn more about the process of trading in a financed car in Wilmington with the experts at Land Rover Wilmington! If you have any questions, feel free to contact us anytime!

Trading in a Financed Car: How Does It Work?

How does trading in a financed car work? Whether you are trading in a financed car for a lease or buying a new one, the team at Land Rover Wilmington will help guide you through the process:

  1. It’s important to first figure out how much you owe on your loan, which is usually found in your monthly statement.
  2. You can use our Value Your Trade tool to determine your vehicle’s value. You could also use other trade-in value estimators, such as Kelley Blue Book. This will give you a ballpark idea of what your vehicle’s worth and allow you to negotiate after your appraisal.
  3. In the case where the amount left on your loan is less than the offer after appraisal, you can put the additional funds towards purchasing your new vehicle. For example, if you owe $10,000 on your vehicle, and the dealership offers you $12,000, you can put the $2,000 towards your new vehicle, as the loan will be paid off. 
  4. If the balance on the loan is more than the offer, you will have negative equity, which requires you to pay off the remaining balance. You can either pay off the remaining balance before purchasing your new car or add the remaining balance to the new loan.

What is “Rolling Over” a Loan?

Rolling over a loan is when the dealership pays the remaining balance, regardless of how much you owe. However, you are still responsible for the remaining balance. The amount paid gets added to the loan on your new vehicle, and you will have to pay off both the new loan and the remaining balance on the old loan when trading in a financed car. 

Trade in Your Used Car at Land Rover Wilmington

Now that we’ve answered the commonly-asked question, “Can you trade in a financed car?” visit Land Rover Wilmington or contact us online for more information. You can check out our new vehicle inventory or even learn how to trade in a financed car for a lease. You can visit our finance center to negotiate a monthly payment that best fits your budget! 

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