Can You Trade In a Financed Car?

Trading in your vehicle that you’ve already financed is possible. However, you have to remember that your vehicle’s loan does not go away just because you traded the vehicle in. Ultimately, you still are responsible for paying off your auto loan. Learn more about your options for trading in your car that has a loan balance with your Southland Dodge finance center. Contact us if you have any questions about if it is a good idea to trade in your vehicle, loan terms, interest rates, payoff amounts, monthly payments, credit score, and more in the Thibodaux area.

How Does Trading In a Financed Car Work?

1. Find out how much you need to pay off your loan. You can find this with the monthly statement.
2. Check out our Trade-in Tool from services such as Kelley Blue Books to get an estimate on your current vehicle. Note that this is only an estimate, and you’ll get a fuller estimate once your vehicle has been fully inspected by our team of certified mechanics. Once they do this, you’ll get a more accurate bill of sale of how much your car is worth.
3. If the remaining amount on your loan is less than the trade-in offer, you will have money to contribute to purchasing a new vehicle from the dealer.
4. If the remaining balance of your auto loan is more than the trade-in offer, then you will owe negative equity on your vehicle. This means you still owe money on your vehicle, and that amount will be added to the balance of your new vehicle. You have two options: you can either roll over the balance into the next auto loan, or you could pay the loan off straight away.
5. You can also roll over the loan, where the dealership will pay off the loan yourself. However, you will have to pay off the price of the old loan and the new loan combined.

Visit us at Southland Dodge today

When you are ready to trade in your vehicle in the Thibodaux area, visit us at Southland Dodge. Be sure to check out some of our new vehicle offers to save even more on your vehicle, or check out our car buying tips so that you may be ready to make the investment you deserve.