So, can you trade-in a financed car? You sure can, but you should understand that the loan doesn’t disappear simply because you’ve done so. You’ll still need to pay off the balance, and you should certainly read on to explore the process before forging ahead. If you need financing advice, our finance center is the place to turn. We’ve put together this handy guide to help you decide if trading in your financed used car is the right move!
How Does Trading in a Financed Car Work?
If the outstanding loan value is less than the worth of the vehicle, you should have enough left over to pay off the loan when you sell, with perhaps a little more for your own pocket. If you owe $5,000 and get $6,000, the loan is paid off and the car is transferred to your chosen South Jersey or Reading dealership.
What Does “Rolling Over” Mean?
Rolling over a loan is when a Allentown dealership agrees to pay off your old loan, regardless of how much you owe. Of course, it’s just a loan to pay off another loan — you’ll then be responsible for repaying the dealership. The price will get added to your new loan on the next car you buy, so you’ll pay the original loan as you pay the loan on your new vehicle.
When is Trading in a Financed Car a Good Idea?
- Does the vehicle you own require a lot of gas? Is it becoming too costly to stay above E? If so, consider trading the car in for a more fuel-efficient model, especially if you don’t tend to commute outside of South Jersey. You’ll save a lot of money on fuel expenses and you’ll get a car that’s better suited for your lifestyle.
- If the dealer offers a sign-over bonus that’s greater than the amount you owe, you could trade-in the car, pay off what you owe, and start shopping for another ride.
Visit Our Rolls Auto Sales Showroom Today for Further Financing Advice
If you’re ready to trade in a financed vehicle and get behind the wheel of something new with better interest rates, use our online calculators to estimate your new monthly payments, get a predicted trade in value, or apply for financing. For any further car buying tips , service guides such as how to jump start your car, or to explore how to trade in a financed car for lease, feel free to contact us today.