Can You Trade in a Financed Car?

Paramus drivers love to keep up with the latest automotive trends. Sometimes that means trading in your current car for a new one before you’ve completely paid it off. Can you trade in a financed car? Yes, people do it all the time. How does trading in a financed car work? Check out the handy guide below, where we explain the process in detail, including how to trade in a financed car for a lease.

How Does Trading in a Financed Car Work?

So, you’re ready to move on from your current car to a new one for your Ridgewood commute, but how does trading in a financed car work, exactly? Suppose you still owe $4,000 on your old car, but it is worth $5,000. The dealer will pay off your loan and apply the $1,000 of equity you have in your old car toward paying for your new car.

Can You Trade in a Car if You Owe More Than What It’s Worth?

Not everyone’s car is worth more than they owe on it. So, how does trading in a financed car work if you owe more than it’s worth? Suppose you owe $4,000 on your old car, but it’s only worth $3,000. You’ll either pay the $1,000 difference to the dealer, or the dealer will pay off the loan and add $1,000 to your new loan.

Can You Trade in a Financed Car for a Lease?

What if you want to lease your next car instead of buying? Can you trade in a financed car for a lease? Yes, we’ve helped many of our Jersey City customers to do just that. Normally, the dealer takes over your loan and applies your positive equity to the down payment on the lease. If you owe more than what the car is worth, that negative equity can be added to your lease, increasing your payments.

Sell Your Car to Land Rover Paramus

Did you know that we’ll buy your car, even if you’re not buying one from us? Used cars are in high demand right now, which means now is the right time to sell or trade in yours. And, if you’d like to learn more, read our other tips on how to trade in a car. We’re just a short drive away from Fort Lee. So, drop by or contact us today.