Can You Trade In a Financed Car?

Trading in a financed car around St. Louis is easy, but you’ll need to keep a few things in mind before you get started. While trading in your car may be a great strategy for paying off the balance on your current vehicle, if it doesn’t cover the remaining balance, you’ll still be on the line for the remaining value. It best makes sense to trade in a financed car when you can cover your remaining balance and have leftover credit or cash from what we offer you for your current vehicle.

If that sounds possible, and you’re wondering, “How does trading in a financed car work?” read on for thorough instructions. Then use our trade-in valuation tool to get a quote and to get in touch with the Suntrup Automotive Group financiers to take the next step in St. Louis!

How Does Trading In a Financed Car Work?

1. Look at the monthly statement for your current auto loan and determine your remaining balance.
2. Then use our trade-in tool to get an estimate of the market value for your current model. Note that when trading in a financed car, St. Charles drivers can use our tool to get an estimate, but our mechanics will inspect the vehicle to verify its condition before we make a concrete offer.
3. So, can you trade in a financed car? If the estimate you receive is more than the remaining balance on your current auto loan, you’re in a good position.
4. If the remaining balance is more, you risk negative equity—which means that you’ll still owe money on your previous vehicle even though you no longer own it.

Is “Rolling Over” a Loan a Good Option?

Sometimes dealerships will pay off the rest of your loan as an incentive to get you to buy a new vehicle. This is a secret tactic to get you to sign the terms on a loan for your next car—they’ll just bury the remainder of your previous loan into your next, and bigger loans come with bigger down payments and more interest.

Have More Questions About Trading in a Financed Car?

Now that Fenton drivers know that they can trade in a financed car, and they know how trading in a financed car works, if they have any unanswered questions, or they’re ready to initiate the process, they can call Suntrup Automotive Group at . We’ll walk you through the steps with full transparency and your financial well-being in mind. While you’re here, be sure to explore our car buying tips for more information about how to pursue in-house financing for used cars and more! We look forward to working with you!