Can You Trade in a Financed Car?

December 10th, 2018 by

Photo of hands holding pencil and pressing calculator buttons over documents

Can you trade in a financed car? The answer is yes! However, Martinsville drivers should be aware that your loan doesn’t go away just because you traded your vehicle in. If you’re in need of financing advice, including how to get financing with bad credit, our finance center can answer your questions. Learn more here then get in contact with us at Gunter CDJR Martinsville for more information on a lease payment, interest rates, and even the price of the car you’re trying to trade in.

How Does Trading in a Financed Car Work?

If the remaining amount on your loan is less than the worth of your vehicle, the dealer buying your vehicle will give you enough to pay the remaining balance. For example, say you owe $5,000 on your Jeep Wrangler and the dealer offers you $6,000 for it. In this case, the loan can be paid off, and the car will be transferred to the dealership you are buying from. The rest of the $1,000 will be taken off of the price of your new Chrysler, Dodge, Jeep, Ram vehicle!

What Is “Rolling Over” a Loan?

what does it mean when you “roll over” a loan? In short, this describes the situation when a dealership says they will pay off your old loan even if you still owe money on it. However, this is often misleading, as the price gets added to your new loan and the next car you buy. Essentially, you are paying the dealership for your old remaining loan.
Asian Couple signing sales contract for car at dealership

Learn More at Gunter CDJR Martinsville

For more information, take the trip from Reidsville, NC to Gunter CDJR Martinsville! When you’re ready to trade in a financed car for lease or get behind the wheel of a new Chrysler, Dodge, Jeep, Ram, be sure to contact us at Gunter CDJR Martinsville. Our finance team is standing by to help you with your next vehicle purchase and can answer any additional finance questions, like whether extended warranties are worth it or if you can lease a used car.

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