Can You Trade In a Financed Car?

Can you trade in a financed car? Yes, you can! However, bear in mind that you are still responsible for paying off the current loan. Trading in a financed vehicle is easier than some Burleson drivers are aware of, and at Shottenkirk Toyota of Granbury, we make the process simple. Contact us if you have any questions. In the meantime, learn more about trading in a financed car. 

How Does Trading In a Financed Car Work?

Before you trade in your financed car, you will want to check the state of your credit score. If you have a poor credit score, the interest rate for your next loan could be higher — which is definitely something to keep in mind if your current auto loan is not yet paid off. So how does trading in a financed car work? See below for an overview of the trade-in process:

1. To find your outstanding balance amount, check your monthly statement or call the finance department at the dealership you financed from.
2. Get an estimate of how much your vehicle is worth by using our Value Your Trade tool. Keep in mind that the number given is only an estimate. The dealership needs to inspect the car, truck, or SUV. The condition of your vehicle plays a role in its worth.
3. You will have money left over if the auto loan is less than the trade-in offer from the dealership. You can choose to use the extra money to purchase a new car from the dealer.
4. If you still owe money on your auto loan and it is greater than the trade-in offer, then you have what is called “negative equity.” You can either pay the remainder in full or roll over the remaining balance into your next auto loan for your new car.

What Does “Rolling Over” A Loan Mean?

Now that you know how trading in a financed car works and that you can trade in a financed car, you need to know that you too can roll over your current auto loan on top of your new auto loan.

What does that mean for Stephenville car-buyers? You’ll be paying for both auto loans at the same time while driving a new vehicle. Keep in mind that rolling over a loan can tend to come with higher monthly payments — so be aware to not go over budget.

Value Your Trade in Granbury

At Shottenkirk Toyota of Granbury, we want to buy your car! Are you ready to trade in a financed car for a lease? If so, our finance team can help you. You can get pre-approved when you apply for financing online or visit our finance center near Cleburne. Take advantage of our new vehicle specials to help you save even more!