Can You Trade In a Financed Car?

Trading in a financed car may not seem possible, but at Ryan Family Dealerships, you can! While your loan balance doesn’t go away just because you’ve traded it in, you can still make this transaction work depending on the value of your current vehicle. Learn how trading in a financed car works with these car buying tips from our finance team.

How Does Trading In a Financed Car Work?

When trading in a financed car in Minot there are several important steps to follow.

1. Determine the remaining balance on your loan. You can find this listed on your monthly statement.
2. Establish the value of your current vehicle. Use our value your trade tool to get an estimate, and then visit our dealership for an inspection and final trade-in value.
3. Weigh your options. If the remaining balance of your auto loan is less than the trade in offer from the dealership, then you’ll have money leftover to go towards purchasing a new car. But if the remaining balance is higher, you’ll still owe money on your car. This is called negative equity, and means you’ll have to either pay off the remainder in full before buying your next car or roll over the balance into your next auto loan.

What Does “Rolling Over” A Loan Mean?

Sometimes, the only way to trade in a financed car is to roll over your current loan. This means adding your existing balance on top of the new amount for your next vehicle. Essentially you’d be paying for two cars at once, as the new dealership absorbs your old balance and you pay them back under new terms. It’s important to make sure this works within your Minot budget, because overextending yourself can create credit score worries down the road. Reach out to our finance team to ensure you make the right choice for you.

Rely on Ryan Family Dealerships for Your Next Vehicle

If you’re ready to trade in a financed car for lease, work with the experts at Ryan Family Dealerships! We’re here to help customers from Williston, , and beyond make smart investment decisions, and want to help you get financing even with a bad credit score. Contact us today to get started, and save even more when you take advantage of our new vehicle specials!