Can You Trade in a Financed Car?

financing a car



Absolutely! You can definitely trade in a financed car, however, you’ll want to keep in mind that trading in a car that is not fully paid off doesn’t make the loan payments go away. You will still be responsible for the balance. Learn more about trading in a car with a remaining loan balance, car loan and interest rates, leasing a car, credit scores, comprehensive insurance, and more with Victory Mitsubishi. Our finance team is standing by to help you with your automotive needs.

How Does Trading In a Financed Car Work?

Wondering how trading in a car works? It isn’t too stressful. Simply follow the steps below.

  1. Find out what you still owe on the loan. That information should be available on the statement you receive each month.
  2. Use our Value Your Trade tool or one from a service like Kelley Blue Book to get an estimate on the value of your current vehicle. The figure you receive is only an estimate. The dealership will need to inspect the vehicle before giving you a final offer.
  3. If the remaining amount of your auto loan is less than the trade-in offer from the dealership, you can use that extra money to help pay for the new car you have selected.
  • For example, if you still owe $8,000 on your loan, but the dealer offers you $9,000 to purchase the car, you will be able to pay off the loan in full and have a bonus of $1,000 that can be used on the new car you’re purchasing.
  1. If the remaining balance of your auto loan is more than the trade-in offer, then you’ll still owe money on your car–this is called negative equity. You have the option of paying the remainder in full before you make your next vehicle purchase. Another choice is to roll over the balance into your next auto loan with the dealer.

What Does “Rolling Over” A Loan Mean?

Rolling over a loan is when a dealership says they will pay off your old loan no matter how much you owe. This sounds too good to be true, right? It is. What this really means is that the remaining cost will be added to your new loan on the next vehicle you buy. So in the end, you’ll be paying the dealership back for the old loan while simultaneously paying off your new vehicle.

Find a New Vehicle at Victory Mitsubishi in %%di_city!

Once you’re ready to trade in a financed car for a lease or when you’re ready to find a new vehicle to cruise around Westchester in, make the trip to Victory Mitsubishi. Apart from new vehicle specials and lease deals to make your new vehicle more affordable, we have a large inventory of new models to choose from so you can get behind the wheel of the vehicle that’s best for your driving needs. Have questions in the meantime? Contact us!

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4070 Boston Road • Bronx, NY 10475

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Victory Mitsubishi 40.8853426, -73.8287864.