Can You Trade In a Financed Car?

Yes, you can! You can trade in a financed car, but your existing loan won’t vanish because you’ve traded it in; you’ll still have to pay off the balance. Learn more about your options for trading in a financed car with Metro Ford Sales Inc! 

If you’re wondering how to trade in a financed car for a lease, or want to know more about car loans, interest rates, and more, we’re the go-to dealership around Colonie! 

How Does Trading In a Financed Car Work?

So, can you trade in a financed car? The answer is yes. Now, what does trading in a financed car involve? Find out how to trade in a financed car for a lease below:

1. Determine your loan’s remaining balance. It’s listed on your monthly statement.
2. Use our Value Your Trade tool to get an estimate of your vehicle’s current value. Keep in mind that this is an estimate, and only when the vehicle is given a full inspection at our Schenectady dealership, you can establish its actual worth.
3. If the remaining amount of your auto loan is less than the trade-in offer from your dealership, you will have money left over that will go towards purchasing a new vehicle from the dealership.

• For example, if you still owe $7,000 on your vehicle in Albany and the dealer offers you $8,000 to buy the vehicle, the loan is paid off, and you still have $1,000 that can be contributed towards your next car.

1. If the remaining balance of your auto loan is more than the trade-in offer then you’ll still owe money on your vehicle, this is known as negative equity. You can pay off the remainder in full before buying your next car, or you might have the option to roll over the balance in your next auto loan with the dealership.

If you want to know, “How does trading in a financed car work,” and whether it’s the best choice, give one of our finance staff members a call at (518) 382-1017.

What Does “Rolling Over” A Loan Mean?

Now that you know how trading in a financed car works, you might be wondering about some of your other available options. Rolling over a loan is when a dealership says they will pay off your old loan no matter how much you owe. However, this can be too good to be true, as the price gets added to your new loan on the next car you purchase, meaning you can pay the dealership back for the old loan while paying off the loan for your next vehicle.

Rely on Metro Ford Sales Inc for Your Next Vehicle

When you’re ready to trade in a financed car for a lease or get behind the wheel of your new Ford, be sure to check out our new vehicle specials at Metro Ford Sales Inc. You can also rely on our other car-buying tips, including what certified pre-owned cars offer and the benefits of Ford Credit. Prepare your vehicle for your next purchase in Latham and start the process soon at Metro Ford Sales Inc!