Can You Trade in a Financed Car?

January 7th, 2019 by
close up of man handing car keys to woman in car
The short answer to the question “can you trade in a financed car” is YES. But, you must pay off the balance of your car loan before you trade in your car for a new vehicle. Learn more about the process of trading in your financed vehicle before getting started. If you have any questions along the way, our financial advisor experts at the Earl Stewart Toyota finance center can help! Contact us in the Palm Beach County area for more information on selling your car, lease payments, interest rates, and more.

How Does Trading In a Financed Car Work?

When you are ready to trade in your car in West Palm Beach, assess how much your car is worth with a value estimating tool. If you owe less on your auto loan than the estimated value of your vehicle, selling your used vehicle to the dealer means you can use the money from the sale to pay off the loan and have a little left over to go towards your next vehicle purchase.

What Does “Rolling Over” A Loan Mean?

Rolling over a loan means that a dealership “pays off” your loan on the vehicle you are selling to them. But the loan doesn’t truly go away–the cost gets added onto your loan for the next car you purchase at that dealership. Essentially, if you want to trade up right now but can’t pay off the balance of your loan in one chunk, rolling over a loan to your next car means you are paying for a past loan and a current loan at the same time.

Visit Earl Stewart Toyota Today!

If you are ready for your next car in Palm Beach Gardens, use our handy payment calculator to estimate what your monthly payments might be. Our finance team is standing by to help you with your next vehicle purchase of a new or used vehicle. Contact us for a test drive today!

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