Can You Trade in a Financed Car?

Woman Standing Outside of Car With Keys
 


When you’ve got a car, you might be interested in what its trade in value is. That will get you closer to the next Kyle car that will drive you for years to come. Can you trade in a financed car? Thankfully, the answer is typically yes. Trading in a financed car will take a little bit of math on your part, but still, it’s rather easy for local drivers to trade in their financed cars for a new one. Let South Point Hyundai and our finance experts walk you through this process of trading in a financed car.

How Do You Trade in a Financed Car?

  1. Figure out how much is left on your Round Rock loan. It’s typically right there on your monthly statement.
  2. Use the value your trade tool on the South Point Hyundai website or consult a reference such as Kelley Blue Book to get an estimate on what your current vehicle is worth. However, you should know that this is only an estimate and only when the vehicle has been given an inspection will you get a true value that can be acted on.
  3. If the remaining balance on your car loan is less than the trade in offer from the dealership, you’ll have some money left over that goes to the next car’s purchase.
    • As an example, if you owe $8,000 on your remaining car loan but the value of your car is $10,000, that means that your $8,000 car loan balance will be paid and the excess $2,000 will go to the next car.
  4. If you’ve got the opposite situation, more money owed than is valued on your car, that’s called negative equity and you’ll have the option to pay that money off now or roll it over onto the balance of your next car loan.

What Does “Rolling Over” A Loan Mean?

When you roll over a loan in Cedar Park, that’s when a dealership will pay off your old loan no matter how much you owe. However, this is a bit of a misleading sales pitch, as this will just add the price of the old loan onto your new loan. That means you pay the dealership back for both loans at the same time.

South Point Hyundai Has the Finance Experts

When it comes to getting your car financed, come to the experts at South Point Hyundai. We’ve got finance experts that are committed to building the community, saving you a second trip over to the bank. We’ll help you get the car that’s perfect for you picked out, so contact us today to get the conversation started.

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