Can You Trade in a Financed Car?

Yes, you can trade in a financed car, but you still have to pay off the remaining loan balance. However, this is not as intimidating as it sounds. Visit our finance center at Chevrolet Center Inc to learn more about paying off car loans, interest rates, leasing a car, and more! Our finance department is dedicated to getting you to save money and back on Winter Haven roads as soon as possible in your new vehicle!

How Does Trading In a Financed Car Work?

We at Chevrolet Center Inc have compiled an instruction manual on how to trade in a financed car. Read on below:

1. Determine the balance of the loan term listed on your monthly payment statement.
2. Use our Value Your Trade tool to estimate the value of your current vehicle. Please note that this is only an estimate and that a more accurate price will be listed once our dealership reviews and inspects your vehicle.
3. If the remaining amount on your loan is less than the trade-in amount, then the money earned from the trade-in will go towards purchasing the new vehicle. For example, if you owe a $7,000 loan on your car, and the dealership offers $8,000 to buy the car, you’ll have $1,000 to contribute to your new purchase.
4. Negative equity is when the auto loan is more than the trade-in offer. You can pay off the remaining balance in full when purchasing the vehicle, or you could roll the balance into your next auto loan.

What “Rolling Over” a Car Loan Means

Rolling over an auto loan is what it’s called when a car dealership agrees to add whatever remaining balance you have left on the loan for your trade-in to the loan for the new car you’re purchasing. Some think that trading in a car with a balance left of the loan means you get to walk away from paying the remainder, but that is not the case. The remaining balance of your previous auto loan gets added to the amount you’re borrowing on your new loan, and you essentially pay back the dealership for both loans at the same time over the course of your loan agreement.

Trade In Your Car at Our Winter Haven Chevy Dealership

Now that you know the process of trading in a car and are able to calculate what your car is worth, come visit Chevrolet Center Inc near Lakeland today! Be sure to check out some of our dealer offers and specials, or read up on our car buying tips to learn more about buying and selling your car or trading in your vehicle! Contact us today to get the used car trade-in process started!