Can You Trade in a Financed Car?

Not only can you trade in a financed car, but the process is actually not too different from trading in a paid off vehicle. The main thing to remember is that trading in a financed car doesn’t mean that the loan still owed goes away. So, how does trading in a financed car work? Learn how to get the most out of the process with the finance center at Suntrup Nissan, and rely on us for all of your car-buying needs in the St Louis area. 

Trading in a Financed Car Work Step by Step

You can trade in a financed car, the only thing is just to remember that the loan will still need to be paid off if you have negative equity. How does trading in a financed car work? Let’s go over the process step by step: 

1. Find out how much is still left on your loan. You can usually find this on your monthly statement or by contacting your lender. 
2. Value your trade to see how much your car is currently worth as this will save you time comparing offers around St Charles. Keep in mind that this is just an estimate, and the dealership may not offer you this exact amount. 
3. If you get more for your car than you owe on the car, then you’ll have money left over that you can pocket or put towards your new car. For example, if you get $10,000 for your car and owe $8,000, then you’ll have $2,000 leftover, which is known as positive equity. 
4. If the amount you owe on your car is more than the amount you receive for it, then you’ll have what’s called negative equity. You can either pay off this balance before buying a new car, or you can have it rolled over onto your next loan. 

Rolling Over a Car Loan

We mentioned the term “rolling over”, but many Jefferson County drivers may not be familiar with this term. When you have negative equity after trading in a financed car, you have the option to roll over the remaining balance onto your next loan. The dealership pays off your current loan, but then that amount will be added to the new loan on your next car. So, you’ll pay the dealership back for the old loan and the new loan at the same time. 

Can you trade in a financed car for a lease? If you have other car-buying questions, reach out to our finance team for more car-buying tips and tricks. 

Trade-In Your Car at Suntrup Nissan

Contact us to learn how you can trade in a financed car for a lease and much more. Not only can you trade in a financed car, but when you trade with us in St. Louis, it’s easy and efficient.