Can You Trade In A Financed Car?

Sales person working with a customer in showroom

Yes! Just because you owe money on your current car doesn’t mean you can’t trade it in for a new car in South Jersey, NJ or Mount Laurel, NJ. There are many reasons why you might need to trade in a financed car. If your car’s fuel efficiency or upkeep are more than you can afford, you’ve added to your family and need a vehicle with more seating, or you find a deal that’s better than what you’re currently paying, you may want to consider the option seriously.

Cadillac Of Turnersville can help you understand more if you’re asking, “How does trading in a financed car work?” or “Can I trade in a financed car for a lease?” Read on, and visit our finance and insurance page when you need help grasping the stipulations and procedures of trading in a financed car. Here are a few starting points.

HOW DOES TRADING IN A FINANCED CAR WORK?

There are a couple of scenarios you need to consider when deciding to trade in your financed car. For starters, the auto loan on your car is not forgiven. It will still need to be paid off. There are a couple of ways to do that.

  • If you owe more on your car than it’s worth in Philadelphia, PA, the dealership will give you enough to pay off the loan when they purchase your vehicle from you. This is called an “upside-down loan.”
  • When the dealership offers to pay off what you owe, regardless of the amount, it’s called “rolling over” a loan. The amount the dealership pays will be tacked onto the price of your new car.

CAN A FINANCED CAR BE TRADED FOR A LEASED CAR?

While this isn’t always the best option, it’s worth considering trading your financed car for a leased car if you’re in an upside-down auto loan and you need something more affordable. The balance of your financed car will be figured into your lease deal. Interested in trying this the other way around? Buying out a lease is almost always easy, but only if you have the credit score needed to finance a car.


TRADE YOUR FINANCED CAR AT CADILLAC OF TURNERSVILLE

Whatever your reason, Cadillac Of Turnersville is happy to help you trade in your financed car. Our finance center will help find the best deal for you. Get a head start at home by filling out our trade-in form to value your current ride, and don’t forget to apply for financing. When you know what how much car your can afford, it’ll make the transition from a financed car to a new car so much easier.