Can You Trade In a Financed Car?

Can you trade in a financed car? Yes, you can trade in a financed car, but the loan on your trade-in vehicle doesn’t stop, and you still have to pay off the loan balance. How does trading in a financed car work in Warner Robins? It’s relatively straightforward. Learn more about trading in a financed car here with the auto finance experts at Five Star Ford Warner Robins, and contact us with any questions.

How Does Trading In a Financed Car Work?

Below is the basic process for trading in a financed car:

1. Find out how much you still owe on your current auto loan. You can usually find it on your monthly statement.
2. Using the Five Star Ford Warner Robins Value Your Trade tool or Kelley Blue Book, get an estimate of the value of your current vehicle. Remember that it is only an estimate, and the amount may vary once a dealership physically inspects your car.
3. If the amount remaining on your auto loan is less than the amount the dealership offers you, you can put the remaining funds towards the down payment of your new Ford F-150!
4. If the remaining balance on your auto loan exceeds what the dealership offers you, you are in a negative equity situation. Your options are to pay the remaining balance, or if you don’t have the money, you can roll over the balance into your new car loan.

What Does “Rolling Over” A Loan Mean?

Rolling over a loan is when a Macon dealership pays off your old loan but adds that amount to your new loan. That means you’ll still be paying off your old and new loans at the same time. Unfortunately, it also means you’ll have negative equity on the vehicle you just purchased.

Shop For Your Next Vehicle at Five Star Ford Warner Robins Today

Our finance team has heard it all, from “Can you trade in a financed car for a lease?” to “Can you trade in a financed car?” We are always happy to answer your questions. Please check out our new vehicle specials and apply for credit online. Then contact us to take a test drive around Bonaire. We’re here to help!