Can You Trade In a Financed Car?

Can you trade in a financed car? If you’re wondering whether it’s possible to trade in a financed car, the answer is yes. However, it’s important to understand that trading in your car doesn’t eliminate the loan on it. You’ll still need to pay off the remaining balance. If you’re considering trading in a car that still has a loan, reach out to the authorized finance center of your local Cadillac dealership for guidance. Should you have any questions about car loans, interest rates, selling a car, leasing options, credit scores, and more near Morrisville, we’re here to assist you.

How Does Trading In a Financed Car Work?

Can you trade in a financed car? Yes! But how does trading in a financed car work? To trade in a financed car, follow these steps:

1. Determine the remaining balance on your loan. You can typically find this information on your monthly statement.
2. Use our convenient “Value Your Trade” tool or consult a reputable service like Kelley Blue Book to get an estimated value for your current vehicle. Keep in mind that this is only an estimate, and the dealership will establish the actual value after physically inspecting the car.
3. If the remaining amount on your auto loan is less than the trade-in offer from the dealership, you’ll have some money left over that can be put towards purchasing your new car from the dealer. For instance, if you owe $6,000 on your car in Apex, and the dealer offers you $8,000, the loan can be paid off, leaving you with $2,000 to contribute towards your next vehicle.
4. In the case where the remaining balance of your auto loan exceeds the trade-in offer, you’ll have negative equity or “upside-down” value. You have two options: pay off the remainder in full before buying your next car or discuss the possibility of rolling over the balance into your next auto loan with the dealer.

If you’re interested in how to trade in a financed car for a lease, we can help! Our team is standing by to provide you with the best possible information to ensure you make an informed decision regarding your automotive future!

Understanding Loan Rollover

Loan rollover is an option offered by some dealerships, where they claim to pay off your old loan regardless of how much you owe. However, it’s important to exercise caution as this arrangement adds the remaining loan amount to your new loan for the next vehicle. Essentially, you end up paying back the dealership for the old loan while simultaneously paying off the loan on your new vehicle.

Trust Hendrick Cadillac Cary for Your Next Vehicle

When you’re ready to trade in a financed car for a lease or purchase a new Cadillac vehicle, visit our dealership in Cary. Check out our new vehicle specials available in Cary to make your next purchase even more enticing. We’re here to provide you with additional car buying tips to help you prepare for your next purchase in Durham. Start the process by applying for financing online. Contact us today to get started or to learn more if you’re still asking yourself “How does trading in a financed car work?”!