Can You Trade In a Financed Car?

Can you trade in a financed car? Yes, indeed! This is a frequent question from car owners looking to upgrade or change their vehicles. While trading in a financed car is a feasible option, it’s vital to understand how does trading in a financed car works, as the loan balance only sometimes disappears.

At Bettenhausen CDJR, we guide you when you trade in a financed car for lease, helping with questions about car loans, leasing, and more in Tinley Park. Check out our new vehicle specials for the latest deals. Our experienced team will provide all the necessary information to make this process smooth and transparent.

How Does Trading in a Financed Car Work?

When contemplating trading in a financed car, the first step is to figure out the remaining balance of your auto loan. Understanding how trading in a financed car works is crucial, especially if you’re considering the option to trade in a financed car for a lease. Understanding your situation’s financial implications and processes is essential, particularly in Orland Park. Let’s break down the process of how does trading in a financed car works:

1. Determine Your Loan Balance: To fully comprehend how trading in a financed car works, start by determining the remaining balance on your auto loan. This crucial information is typically listed on your monthly loan statement and is the foundation for your decision-making process.
2. Estimate Your Car’s Value: Utilize tools like our ‘Value Your Trade‘ feature or reputable services such as Kelley Blue Book to obtain an estimated market value for your current vehicle. Keep in mind, however, that this figure is provisional until your car undergoes a thorough inspection by the dealership.
3. Compare Loan Balance and Trade-In Offer: One positive equity example: If you owe $7,000 on your car in Mokena and the dealership offers $8,000, the loan gets paid off, leaving you with $1,000 to contribute towards your next vehicle or a new lease if you choose to trade in a financed car for lease. Or our negative equity example: If your auto loan balance ($9,000) exceeds the dealership’s trade-in offer ($8,000), you have negative equity of $1,000. This can be paid off before buying your next car, or you might roll over the balance into a new auto loan with the dealer.
4. Decision Time: With these figures, it’s time to evaluate your options. Carefully weigh whether trading in your financed car or considering a financed car for lease aligns with your financial goals and current circumstances. This decision is crucial and can impact your financial well-being in the long term.

What Does it Mean to “Roll Over” a Loan?

Rolling over a loan occurs when a dealership agrees to pay off your existing loan regardless of the amount you owe, which is essential to understanding ‘Can you trade in a financed car.’ However, this amount gets added to your new loan on your next vehicle, meaning you repay the old loan while simultaneously paying off the new one.

This is a common practice in scenarios where you trade in a financed car, and it’s crucial to consider the financial implications of this in New Lenox. It’s important to carefully evaluate your financial situation to ensure this option aligns with your long-term financial goals.

Choose Bettenhausen CDJR for Your Next Vehicle

When considering the next steps for your financed vehicle, a typical query might arise: ‘Can you trade in a financed car?’ At Bettenhausen CDJR, we make trading in a financed car a straightforward experience. Visit us at Tinley Park and utilize our insightful car-buying tips for a better purchasing experience. Start by applying for financing online, and let us guide you smoothly through trading in your financed car for your next vehicle acquisition!