Can You Trade In a Financed Car?

Many North Charleston drivers wonder, “Can you trade in a financed car?” Yes, you can! However, the current loan does not go away when you swap for a new vehicle. You will need to pay off the remaining balance. With that said, how does trading in a financed car work? We are glad you asked. Our team at Rick Hendrick Chevrolet further explains how you can trade in a financed car and how you can trade in a financed car for a lease. Contact us if you have any questions or want to set up an appointment!

How Does Trading In a Financed Car Work?

1. Look at your monthly statement to determine your remaining balance.
2. Take advantage of our Value Your Trade tool on our website, or use Kelley Blue Book to compare. Keep in mind that the value is an estimate and the price could change once inspection is complete.
3. Once you determine your trade-in value, check to see if it is lower than the balance you owe. If so, you have money left over that could go towards a new vehicle. An example of this, if you owe $3,000 on your current financed car, but the dealer gives you $5,000 to buy your vehicle, then you will have $2,000 remaining.
4. However, if your auto loan is more than the trade-in value, you will still owe the outstanding balance. You can either pay the entire amount before your new car purchase or roll over the amount to apply for your new auto loan with the dealership.

What Does “Rolling Over” A Loan Mean?

To roll over a loan when trading in a financed car means that you do not have to pay off your current balance. Instead, the remaining balance will roll over to your new car loan. You will be paying off the remaining amount of the old loan at the same time as you’re paying off the new loan. 

Rely on Rick Hendrick Chevrolet for Your Next Vehicle

You can rely on Rick Hendrick Chevrolet to assist you in trading in a financed car. We hope we helped clarify how you can trade in a financed car and the details involved. Our finance department can help Mount Pleasant drivers in and around the area to help pay off your current loan or roll over your remaining balance. Be sure to apply for financing online James Island friends, and check out our new vehicle specials too!