Can You Trade In A Financed Car?

Can you trade in a financed car? The answer is yes! However, the loan on your current vehicle won’t go away because you’ve traded it in; you’ll still have to pay off the balance. Learn more about how trading in a financed car works with Wesley Chapel Toyota, and then browse our new vehicle inventory to find a new sedan, truck, or SUV for your St. Pete commute. You can also read our other car buying tips to learn more about what good mileage is on a used vehicle. 

How Does Trading In a Financed Car Work?

Now that you know that you can trade in a financed car, you are probably wondering “How does trading in a financed car work?” Learning how to trade in your financed car is an easy process, but there are quite a few steps involved. Read through our steps on how to trade in a financed car below: 

1. Determine the remaining balance on your loan. It is typically listed on your monthly statement.
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. Note that this is simply an estimate, and it’s only once the vehicle has been physically inspected that the dealership will establish what the car is worth. 
3. If the remaining amount of your auto loan is less than the trade in offer from the dealership, then you’ll have money leftover that will go towards purchasing a new car from the dealer. 
1. For example, if you still owe $9,000 on your car in Lakeland, and the dealer offers you $10,000 to buy the car, the loan can be paid off and you’ll have $1000 to contribute towards your next car. 
4. 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 can pay off the remainder in full before buying your next car, or you may have the option to roll over the balance into your next auto loan with the dealer.

What is “Rolling Over” A Loan?

When you “roll over” a loan on a vehicle near Tampa, the dealership is saying they’ll pay off your old vehicle loan no matter how much you owe. However, if this sounds too good to be true, that’s because it is. The price of your old loan is added to your new loan on the next vehicle you buy, meaning you’ll be paying the dealership back for your old loan and your new loan at the same time. 

Get a New Toyota Vehicle at Wesley Chapel Toyota

When you’re ready to trade in a finance car for a lease or get behind the wheel of a new Toyota model, come to our Wesley Chapel showroom! Our friendly staff will help you find the right vehicle for your daily drives and help you save on your purchase with our new Toyota specials. You can also read our other car buying tips for more information on the car buying process. Apply for financing today to buy a new Toyota!