Can You Trade In a Financed Car?

Can you trade in a financed car? Here at Cornerstone Plymouth trading in a financed car is simple. So, how does trading in a financed car work exactly? If you’re looking to trade in a financed car for lease opportunities or to purchase a different model, we can help! You’ll simply want to keep in mind that the remaining amount on the loan of your current vehicle doesn’t go away. You will need to pay off the balance. Even still, trading in a financed car is still routinely done here at Cornerstone Plymouth. Read on to learn more about trading in a financed car with the skilled finance team at Cornerstone Plymouth. 

How Does Trading In a Financed Car Work?

So, how does trading in a financed car work? We’ll outline the process for you below:

1. Figure out the remaining balance on your loan. This should be listed on your monthly statement.
2. Use our Value Your Trade tool to get an estimate on the value of your current vehicle. Be sure to note that this is simply an estimate, and it’s only once the vehicle has been physically inspected that the dealership will determine what the car is worth. 
3. If the remaining amount of your auto loan is less than the trade-in offer from the dealership, then you’ll have money left over that can go towards purchasing a new car.
4. If the remaining balance of your auto loan is greater than the trade-in offer, then you’ll still owe money on your car. You can pay off the remainder in full before buying your next car, or you may have the option to roll over the balance into your next vehicle loan.

What Does “Rolling Over” a Loan Mean?

When a dealership says they will pay off your old vehicle loan, it’s called a rollover loan. With a rollover loan, the price of your old loan is added to the new loan on the next car you buy, meaning you pay back the dealership for the old loan at the same time as paying for the new loan.

Rely on Cornerstone Plymouth for Your Vehicle Financing Needs

Trade in a financed car for lease options or a new purchase! Explore our new or used vehicle inventory online to find the perfect model for you! Still have questions? Contact us today!