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Can You Trade In a Financed Car?

You can absolutely trade in a financed car. Keep in mind though, you will still have to pay off the balance. If you’re interested in trading in a vehicle you’re are still making payments on, you’ll want to review the process of trading in your financed vehicle before you get started. And if you’re in need of further financial advice, our finance center can answer your questions. Find out more about the process of trading in a finance vehicle at Tamaroff Honda, then get in touch with us for more information on a lease payment, interest rates, and even the price of the car you’re trying to trade in.

How Does Trading In a Financed Car Work?

If the remaining amount of owned on your auto loan is less than the current value of your vehicle, the dealer buying your vehicle will give you enough to pay the rest of the loan off. For example, if you still own $9,000 on your vehicle, and the dealer offers you $10,000 for it, you can then pay off your current auto loan and have the car transferred to the dealership buying the car. The leftover $1,000 will then be applied to the new vehicle you are purchasing.

What Does “Rolling Over” a Loan Mean?

Rolling over a loan is when the dealership where your trading in your vehicle pays off your loan in full, no matter how much is still owned. However, this doesn’t get you out of paying off your old vehicle. The amount of your old loan gets added to your new loan on the next car you buy. This means you have to pay the dealership back for the old loan they paid off, as well as pay off the cost of your new vehicle.

Enjoy Financing Options at Tamaroff Honda

Wondering the value of your trade-in? Use our easy online calculator to value your trade. When you’re ready to trade in a financed car for a new Honda vehicles or to take advantage of one of our lease deals, visit Tamaroff Honda. Our finance team is standing by to help you with your next vehicle purchase.