Can You Trade In a Financed Car?

Can you trade in a financed car? The simple answer is yes, but you’ll still need to pay off your loan balance. However, this can still be a good decision for many Jersey City drivers. Find out whether or not trading in a financed car is the best choice for your finances with Jaguar Englewood, and be sure to get in touch with our finance department with your questions.

How Does Trading In a Financed Car Work?

If you already know how to trade-in a car, trading in a financed car shouldn’t pose any major difficulties. Even so, before you trade in a financed car for lease in Fort Lee, you’ll need to do a little research. Here are the steps you need to take before heading to the dealership:

• What’s the remaining balance on your loan? If you aren’t sure, check out your monthly statement.
• What’s your car’s current value? Check out our Value Your Trade tool to get a quick, free estimate. You can also check out sites like Kelley Blue Book to get a good range.
• If your car’s value is greater than the current balance of your loan, you’ll have money leftover to use toward your new car at the dealership.
• If your car’s value is less than the current balance of your loan, you’ll still owe money on your car. This is called “negative equity”. You can either pay off the remaining balance or roll it over.

We’d love to buy your used car, even if you’re still paying off your loan! Call us at (201) 862-7755 to get the process started. Not yet ready to sell? Knowing what steps to take after buying a used car can help to ensure that you don’t end up under water.

What is “Rolling Over” a Loan?

How does trading in a financed car work when you still have a balance on your loan? You can often roll over the loan with the dealership, which means the dealership pays off your old loan and “rolls” the remaining balance onto a new loan. While this sounds like a great solution, keep in mind that the amount that you roll over simply gets added to the monthly payments for your new car. That means you pay off the old loan while you pay off your new loan. So, consider your next steps carefully! It’s almost better to pay off the remaining balance in one lump sum, if possible.

Get Expert Auto Financing Advice at Jaguar Englewood

So, is trading in a financed car the best option for you in New York City? Feel free to contact our financial experts at Jaguar Englewood for personalized advice. Our team can help you find just the right solution for your needs and budget, so stop by Englewood to learn more.