Can You Trade In a Financed Car?

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If you’ve ever wondered, “Can you trade in a financed car?”, the answer is yes! You can trade in a financed car — but the ease of trading in a financed car depends on your equity position. Learn more about your finance options here from Rallye Acura in Roslyn, such as whether you can trade in a financed car for a lease, and reach out to us if you have any questions by calling 516-508-9147. We can help you with auto financing, interest rates, trading in a car, or anything else. We are your local auto experts in greater Manhasset.

 

 

How Does Trading In a Financed Car Work?

So, how does trading in a financed car work? Follow the steps below.

  1. Determine the remaining balance on your current auto loan. You’ll find it listed on your monthly statement, or call your loan company.
  2. Use the Rallye Acura value your trade tool or research online with Kelley Blue Book or Cars.com to estimate the value of your car. Remember, it’s an estimate. The actual amount depends on the condition of your vehicle, the inventory at the dealership in Garden City, and the demand for your particular make and model.
  3. If the remaining amount of your car loan is less than the dealership’s trade-in offer, you’re in a positive equity position and will have money left over that can go towards purchasing a new car.
    1. For example, if you still owe $5,000, and the dealer offers you $7,000 as a trade-in, you can pay off the loan and still have $2,000 to contribute to the down payment of your next car.
  4. If the remaining balance of your car loan is more than what the dealership offers you for your trade-in, you’re in a negative equity situation or “upside-down” on your car loan. You will either have to pay off the balance in full before buying another car or “rollover” the balance into your new auto loan at Rallye Acura near Glen Cove.

What Does “Rolling Over” A Loan Mean?

“Rolling over” a loan is when the dealership pays off your old loan and adds the remaining balance to your new loan. So, you’re essentially paying off the old loan simultaneously as you’re paying off the loan on your new vehicle. This puts you into negative equity on the new car. Sometimes waiting to buy another car until you pay yours off is your best bet.

Shop For Your Next Vehicle at Rallye Acura

If you’re ready to trade in a financed car for a lease, pre-owned vehicle, or a new Acura RDX, you can trust Rallye Acura. We want to see you behind the wheel of your dream car on a test drive around Jericho! Our finance team will work hard to get you a payment you can afford and make the process as hassle-free as possible. Feel free to browse our new vehicle specials and reach out to us today!

 

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