Can You Trade in a Financed Car?

Excited Couple Reviewing Trade in Offer with Salesman

Are you in the market for a new car, but you haven’t paid off your old car yet? Then you might have questions: Can you trade in a financed car? How does trading in a financed car work? Can you trade in a financed car for a lease? Don’t worry. Our friendly Finance Department has helped several Port Huron customers just like you with the intricacies of trading in a financed car. So, let’s answer your questions.

How Does Trading in a Financed Car Work?

Trading in a financed car is easy if your car is worth more than you still owe on it. Let’s say you owe $3,000 on your old car, but it is worth $4,000. The new lender will pay off your old loan and apply the remaining $1,000 towards your down payment for your new car. How does trading in a financed car work if you owe more than what it’s worth?

Can You Trade in a Financed Car When You Owe More Than it’s Worth?

Can you trade in a financed car when you owe more than it’s worth? Yes, but it may or may not make financial sense for you. How does trading in a financed car work in that case? Either you pay the difference between what you owe and what the car is worth, or the dealer will take over your loan, but roll your negative equity into the loan on your new car. So, for example, you owe $4,000 on your old car but it’s only worth $3,000. You either pay the $1,000 difference to the dealer, or the dealer will add $1,000 to your new loan.

Can You Trade in a Financed Car for a Lease?

Yes, you can trade in a financed car for a lease. In this case, the dealer takes over your loan and applies your positive equity to the down payment on the lease. But how does it work if you owe more than what the car is worth? Much the same way as if you were buying the new car. You can either pay the difference upfront or the dealer will add your negative equity to the amount of the lease, resulting in higher monthly payments.

Ask Moran Blue Water Chrysler Dodge Jeep Ram of Fort Gratiot About Your Financing Options

You have questions. We have answers. So, contact us, we’ll be happy to help. We aim to make it easy for you to get into your next car. You can even apply for financing online. We’re just a short drive away from Marysville, you can explore our entire inventory of new and used cars from the comfort of your home.

Saved Vehicles

SAVED VEHICLES

You don't have any saved vehicles!

Look for this link on your favorites:

Save

Once you've saved some vehicles, you can view them here at any time.

Contact Us

(810) 385-4481

Call Now

4080 24th Ave • Fort Gratiot, MI 48059

Get Directions

Today's Hours:

Open Today! Sales: 9am-8pm

Open Today! Service: 6:30am-7pm

Moran Blue Water Chrysler Dodge Jeep Ram 43.026883, -82.455050.