Can You Trade In a Financed Car?

The answer to this question is “Yes you can!” Yet how does trading in a financed car work? It should be noted that the loan on your vehicle won’t simply vanish because you’ve traded it in. You’ll still be required to pay off the existing balance.

At Porcaro Ford, this is a question we’ve received a lot from Mount Pleasant and Kenosha drivers. What does trading in a financed car entail? Read on below to learn more and when you’re ready, give us a call at 262-398-2006 or contact us online.

How Does Trading In a Financed Car Work?

We get a lot of questions from first-time and long-term customers like, “Can you trade in a financed car?” We also get asked about how to trade in a financed car for lease as well. First thing first, let’s showcase the proper steps on trading in a financed car:

1. Determine your remaining balance on the loan. It will be typically listed on your monthly statement.
2. Use our Value Your Trade tool on our website or one from an experienced auto website like Kelley Blue Book to get your current vehicle’s estimated value. Remember this is only an estimate and it will only be after a physical inspection by the staff at Porcaro Ford that it will be established how much the car is worth.
3. At the same time, if the remaining auto loan is less than the trade-in offer from the dealership, you’ll have money left over that can go towards purchasing a new car from the dealer.
4. If the remaining balance of your auto loan is more than the trade-in offer, you’ll still owe money on your car and this is known as negative equity. You’ll be able to 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 Does “Rolling Over” A Loan Mean?

We’ve covered a variety of topics, but what about rolling over a loan? This is when the dealership indicates they’ll pay off your loan, no matter how much is owed. Something like this sounds amazing. However, the price gets added to your new loan on the next vehicle you buy, meaning you’ll pay the dealership back for the old loan, while you pay off the loan for your next selection.

Find Your Next Car With Porcaro Ford in Racine

So now that you know the answer to the question, “Can you trade in a financed car?” turn to Porcaro Ford for all your financial options. If you want to know more about how to trade in a financed car for a lease, give us a call and we’ll assist.

At the same time, if you’re looking for your next vehicle, check out our new and used specials to see how much you might be able to save. Whether it’s trading in a financed car in Racine or learning how to check coolant levels, Porcaro Ford is the place to go.