Can You Trade In a Financed Car? | Car Buying Tips

Finance Center

Can you trade in a financed car? Absolutely — but just because you’re trading it in doesn’t mean that the loan on your vehicle disappears. You will still be required to pay off the balance. Curious about the process of trading in a financed car? The Jim Hudson Ford Finance Center is here to help Columbia-area drivers who want to drive a new Ford but still owe some money on your current car loan.

Finance Center

How Does Trading In a Financed Car Work?

Before you trade in your financed car, make sure that you understand the process. Here is what you need to know and do before you begin searching for a new Ford:

Check your monthly statement to identify the remaining balance on your loan.
Use the Jim Hudson Ford Value Your Trade tool to get an estimate on your current vehicle’s value. You won’t get a true car value until your vehicle is physically inspected at the dealership, though.
Consider the difference between what you owe and what your vehicle is estimated to be worth.
- If your loan balance is less than the trade-in estimate, then you’ll likely have some money leftover to put toward your new vehicle purchase.
- If your remaining loan balance is more than the trade-in estimate, then you’ll have to pay off your car (this is called negative equity). You can either pay off the remainder before moving forward with your new vehicle purchase, or explore options to roll over the balance to your next auto loan with the dealership.

Now, some Chapin drivers may be asking: “Can you trade in a financed car for a lease?” The answer is yes! Again, the best solution for you depends on how much your current vehicle is worth and how much your payoff is.

What Does “Rolling Over” a Loan Mean?

When trading in a financed car, you might discover that you still owe money on your old car, even with a trade-in offer. In this scenario, you may be presented with the option to roll over a car loan, which is when the balance gets added to the total of your new loan. In short, this means you will pay the dealership back for the old loan while simultaneously chipping away at the loan on your new vehicle to drive around Irmo.

Turn to the Finance Experts at Jim Hudson Ford

Interested in trading in a financed car to get behind the wheel of a new Ford F-150 or new Ford Explorer? Hoping to buy out your lease or find used car in-house financing? Then it’s time to get in touch for a test drive! Before visiting, feel free to apply for financing online.

Although every reasonable effort has been made to ensure the accuracy of the information contained on this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user "as is" without warranty of any kind, either express or implied. All vehicles are subject to prior sale. Price does not include applicable tax, title, and license charges. ‡Vehicles shown at different locations are not currently in our inventory (Not in Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed one week.

Although every reasonable effort has been made to ensure the accuracy of the information contained on this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user "as is" without warranty of any kind, either express or implied. All vehicles are subject to prior sale. Price does not include applicable tax, title, and license fees. ‡Vehicles shown at different locations are not currently in our inventory (Not in Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed one week.