Can You Trade In a Financed Car?

You can definitely trade in a financed car in most cases — so long as you bear in mind that the loan on your vehicle won’t magically disappear simply because you’ve traded in your vehicle. So, what does the process of trading in a financed car look like? Well, you trade in the car as per usual, but then you continue to pay off the balance. Alternatively, you can have the remainder of the loan rolled over. 

Whether you want to trade in a financed car for a lease or you’re just looking to unload your old vehicle to avoid making future payments, we here at the Holiday Automotive finance center can help. Read on to learn more or contact us anytime!

How Does Trading In a Financed Car Work?

1. Figure out what the outstanding balance is on your car loan. Usually, this will be listed on your monthly payment statement.
2. Use our Value Your Trade tool or check NADA, TrueCar, or Kelley Blue Book values to get an estimate on the value of your current vehicle. Remember, in most cases, this is just an estimate that will need to be confirmed. In some cases, you can get an actual instant cash offer, though. Call us at 866-807-8084 for more details.
3. Is your outstanding loan balance less than the trade in offer you receive? In that case, you’ll have money leftover that will go toward purchasing a new car from the dealer!
4. For example, if you still owe $10,000 on your car in Oshkosh or Sheboygan, and the dealer offers you $11,000 to buy the car, the loan can be paid off and you’ll have $1,000 to contribute toward your next car.
5. If the remaining balance of your auto loan is more than the trade-in offer, then you’ll still have to continue making payments unless you can get the loan rolled over.

What is “Rolling Over” a Loan?

Rolling over a car loan is actually a fairly simple process. It’s what happens when a car dealership, such as Holiday Automotive, says they will pay off your old loan regardless of how much you owe. However, generally, this price gets tacked onto your new car loan, so in essence, you still wind up paying it off. This is why, for many West Bed and Beaver Dam drivers, trading in a car is best when there’s no outstanding loan.

Holiday Automotive Has Your Next Vehicle In Stock!

Ready to trade in your financed car for a new car lease near Ripon or even a quality pre-owned vehicle? Get behind the wheel of a from Holiday Automotive today! Be sure to browse our lease deals in Fond du Lac or used vehicle specials to save more. Meanwhile, apply for financing online.