Can You Trade In a Financed Car?

Yes, you can trade in a financed car — but remember that the loan on your car will not just go away after it’s been traded in; the balance needs to get paid off. Learn how to trade in a financed car with a remaining loan balance with the financial experts at the Hyundai finance center. Don’t hesitate to reach out to us with questions about car loans and interest rates, selling a car, leasing a car, credit scores, and more in Minneapolis. 

Trading In a Financed Car: How Does it Work?

How does trading in a financed car work? Here is the process broken down: 

1. Check your monthly statement to see what your balance is.
2. Use our Value Your Trade tool to get an estimated value of your current vehicle. Remember, this is just an estimate, and you won’t know the vehicle’s worth until it’s been physically inspected.
3. If you owe less than the trade-in offer from the dealership, then you’ll have money that you can put towards buying your next vehicle with us. For example, if you still owe $7,000 on your car in Richfield and the dealer offers you $8,000 to buy the car, you can pay off the loan and use the remaining $1000 to contribute towards your next car. 
4. If your auto loan is more than the trade-in offer, you still owe money on your car. This is known as negative equity. You can either pay that amount off in full or roll over the balance into your next auto loan.

“Rolling Over” A Loan: What Does it Mean?

When you roll over an auto loan, it means that the dealership is paying off the old loan no matter how much you owe. However, that amount gets added to your new loan on the vehicle that you’re buying at the dealership. This means you’re paying the dealership back for the previous and new loan.

Learn More About Trading in a Financed Car at Morrie's 394 Hyundai

Is it time to trade in your financed car for a lease or auto loan and upgrade your ride with a new Hyundai vehicle? Be sure to explore our new vehicle specials and get pre-approved for financing before visiting our dealership. We can’t wait to help you find the vehicle that’s best suited for you. Have any questions in the meantime? Give us a call!