Can You Trade In A Financed Car?
Drivers from Deptford to Voorhees have often found themselves wondering, can you trade in a financed car? The short answer is: yes. However, there are some considerations you should be aware of. It is especially important to note that the current loan on your vehicle isn’t forgiven when you trade your vehicle in, and you must pay off the remaining balance.
Chevrolet Of Turnersville has compiled a handy guide for you to read through. Learn how trading in a financed car works, and be sure to reach out to us for additional information on lease payments, interest rates, or the valuation of your current car.
How Does Trading In A Financed Car Work?
Trading in a financed car is a lot like trading in any other sort of vehicle! However, you will notice a few differences when it comes time to finalize the paperwork. If the remaining amount owed on the loan is less than the value of the vehicle itself, the dealership will give you enough to pay off the remainder of the loan when they purchase your vehicle.
Here’s an easy way to look at it: if you owe $8,000 on your car, and the dealership offers $9,000 to buy it, the loan will be paid off and the car transferred to the dealership buying it. The remaining sum of $1,000 will then be deducted from the purchase price of the new vehicle.
What Does “Rolling Over” A Loan Mean?
When a dealership says they will pay the remainder of your old loan, no matter how much you owe, this is called “rolling over” a loan. It is important to note, however, that this price will be tacked on to your new loan on your next vehicle. This means you’ll end up paying the dealership back for covering your old loan, through loan payments on your new vehicle.
Another example: If you owe $8,000 on your loan, and the dealership offers you $7,000 for your trade-in, they may also offer to roll over the remaining loan balance. This means that an extra $1,000 will be tacked on to the next auto loan you take out, and you’ll pay it off over the next few months.
Get All Your Financing Help At Chevrolet Of Turnersville!
Ready to trade in a financed car for a lease, or get yourself a new Chevrolet for those Turnersville drives? You’ll find all the help you need through the expert finance team at Chevrolet Of Turnersville. Have remaining questions about the financing process? Give us a call, and one of our dedicated staff members will assist you today.