Can You Trade In a Financed Car?

Some Glen Dale drivers have asked us at Straub Chrysler Dodge Jeep Ram, “Can you trade in a financed car?” Yes, but do keep in mind that the loan on your current vehicle doesn’t go away because you’ve traded it in, You still must pay off the remaining balance. Fortunately, trading in a financed car is easy at Straub Chrysler Dodge Jeep Ram. Contact us with any questions you have about car loans. We’re eager to help!

How Does Trading In a Financed Car Work?

So, exactly how does trading in a financed car work? Keep reading to learn the process of trading in a financed car around Wheeling.

1. Check your loan statement to find out the remaining balance on your current loan. 
2. Using our Value Your Trade tool or one from another online service like Kelley Blue Book, get an estimate on the value of your current car. Remember, the value is simply an estimate. The vehicle will be physically inspected at the dealership to establish what the car is worth and what the dealership will pay.
3. If the remaining amount of your current auto loan is less than the trade-in offer from the dealership, then the excess amount can be credited towards purchasing a new car from the dealer and be used as your down payment. For example, if you still owe $5,000 on your car and the dealership offers you $8,000 for it, the loan will be paid off, and you’ll have $3,000 to contribute towards the purchase of your next new vehicle. 
4. If the outstanding balance of your auto loan is more than the trade-in offer from the dealership, you have negative equity. You have the option of paying off the remaining balance before buying your next car or rolling over the balance into your next car loan in Moundsville.

What Does “Rolling Over” A Loan Mean?

“Rolling over a loan” is when a dealership takes on the responsibility of paying off your old loan by adding that amount to your new loan for your next car. In essence, you pay the dealership back for the old loan while you pay off the loan on your new vehicle.

Find Your Next Vehicle at Straub Chrysler Dodge Jeep Ram

Are you ready to trade in a financed car for lease or purchase of a new Chrysler, Dodge, Jeep, or RAM? Check out our new vehicle specials and let’s go for a test drive around St. Clairsville, OH. You can apply for financing online to get the car buying process started. Contact us today!