Can You Trade in a Financed Car?

Man and Woman Signing Contract
 

Humble often want to know, “Can you trade in a financed car?” The answer is yes! However, keep in mind that trading your car in does not mean that you’re no longer obligated to pay the remaining loan balance; you will still have to pay that remaining amount. Read on to find out how trading in a financed car works with Humble Hyundai finance center experts. Then, be sure to contact us if you have additional questions about how to trade in a car

How Does Trading In a Financed Car Work?

When you think it’s time to upgrade your Houston commute by trading a financed car, follow these steps:

  1. Find out how much is left on your loan. This figure is typically listed on your monthly statement. 
  2. Use our Value Your Trade tool or one from a service like Kelley Blue Book to obtain an estimate of the current vehicle’s value. Keep in mind that these tools will simply provide an estimate, and it’s only once your vehicle has been physically inspected that the dealership will be able to establish exactly what it’s worth. Read this guide on how to get your car ready to sell. When your car is in excellent condition at the time of the appraisal, this increases your chances of receiving a lucrative offer.
  3. If the remaining amount of your auto loan is less than the dealership’s trade-in offer, then you’ll have extra money to put towards purchasing a new car from the dealer. For example, if you still owe $7,000 on your car, and a dealership offers you $8,000 to buy the car, the loan can be paid off and you’ll have $1,000 to contribute towards your next car.
  4. If the remaining balance of your auto loan is more than the trade-in offer, this means that you’ll still owe money on the vehicle–otherwise known as negative equity. You can either pay off the remaining balance in full before purchasing your new vehicle, or you may have the option to roll over the balance into your next auto loan with the dealer. 

What Does “Rolling Over” a Car Loan Mean?

When your loan gets “rolled over,” the dealership will pay off the old loan no matter how much you owe. However, this does not mean that you’re no longer responsible for that amount. Rather, the balance of the old loan will get rolled into the new loan, meaning that you’ll be paying the dealership back for both loans at the same time. 

Trade in Your Used Car at Humble Hyundai

Now that you know the ins and outs of trading in a financed car, when you’re ready to secure the keys to a new ride, rely on Humble Hyundai to help you make it happen. Also, be sure to check out our new vehicle specials to get an even better deal on your new Hyundai.

 

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