For Normal drivers interested in an upgrade to a new car, the question, “Can you trade in a financed car?” is a common one. While there are a number of things you should keep in mind when you’re trading in a financed car, the easy answer is: yes. you can trade in a financed car. Most importantly, the current car loan on your Morton vehicle will need to be paid off in full. Read on with the Sam Leman Toyota Bloomington experts for how to trade in a financed car for lease or purchase and more financing tips.
Answering “Can you trade in a financed car” is simple enough, and the process itself is not that complicated, either. First, you’ll want to value your trade-in. This will help you understand how it stacks up against the remaining amount you owe on your loan, which will determine how much more finalizing on the paperwork you may face. Your trade-in value is figured through a number of factors including:
So, how does trading in a financed car work? To illustrate: if you owe $7,000 on your Toyota, and your dealership offers $9,000 to buy it, the loan will be paid off. The car ownership will be transferred to the dealership, and the remaining sum of $2,000 will then be deducted from the price of your new ride. If you want to trade in a financed car for lease, this is the best option, as “rolling over” a loan into a lease is rare.
If a dealership agrees to pay off the remainder of your old loan, this is called “rolling over” a loan, there are a few things to keep in mind. The price you will encounter for your next loan, in this case, will include the remainder of your old loan, and you will owe the value to a new lender through your dealership. Knowing if the answer to “Can you trade in a financed car?” typically relies more on whether Springfield drivers want to consider “rolling over” their loan in this way.
If you are trading in a financed car and happen to owe $7,000 on your previous auto loan, and the dealership offers you $5,000 for your trade-in, they may offer to “rollover” the remaining loan balance. This means that an extra $2,000 will be tacked on to the next auto loan you take out, and you’ll pay it off over the course of your regular payments. To trade in a financed car for a lease in this way is unlikely, though it’s best to consult your finance specialists to consider all your options.
With the answer to “How does trading in a financed car work?” under our belts, explore how financing works for our drivers, or whether you prefer the freedom of ownership in our guide for buying vs. leasing. Our experts are standing by to help you in any step of your upgrade, so contact us today to get started!
If you require a truck that can haul serious weight around Normal and the surrounding areas, the 2025 Toyota Tacoma might be the vehicle for you. It offers impressive towing capabilities, allowing you to haul various materials, recreational gear, and more. So, how much can a Toyota Tacoma tow? The answer depends on which…
The Toyota Camry is one of the best-selling vehicles in the United States—and with good reason. With a great blend of powerful performance and leading comfort/safety features, this midsize sedan is the perfect option for your everyday needs. With the 2025 model receiving a significant refresh, including a new exterior, updated interior, and additional Toyota…
How much can a Toyota Tundra tow? If you’re curious to know more about the performance of the impressive 2025 Toyota Tundra, then you’ve come to the right place. Regardless of which trim level you choose, this reliable truck can handle anything you throw its way no matter where you go in Morton. Learn…