Can You Trade In a Financed Car?

You can absolutely trade in a financed car — but bear in mind that the loan on your vehicle will not automatically disappear just because you’ve traded your vehicle in. In other words, when trading a financed car in, you will still be responsible for the balance of your auto loan. Want to learn more? Read on or contact us at the Nissan of Downtown L.A. finance center.

How Does Trading In a Financed Car Work?

Trading in a financed car works similarly to trading in a car without a loan balance. Here is what you’ll want to do:

1. Figure out what your loan balance is. You’ll usually find this listed on your monthly car payment statements.
2. Use our Value Your Trade tool online so you can get an estimate on the current value of your vehicle. 
3. If the remaining amount of your car loan is less than the trade-in offer from the dealership, then you’ll have a surplus of money that you can use to purchase a new vehicle:
4. For example, if you still owe $8,000 on your car in Downey, and the dealer offers you $11,000 to buy the car, the loan can be paid off and you’ll have $3,000 to contribute toward your next car. 
5. If the remaining balance of your auto loan is more than the trade-in offer, then you’ll still owe money on your car. In other words, you’ll have negative equity in it, and you will have to pay off the loan balance before the trade-in process begins.

What Does “Rolling Over” a Loan Mean?

Rolling over a loan is what happens when a dealership pays off the entirety of your old vehicle’s loan and then rolls that same amount into your next vehicle’s loan. Often, rolling over a loan can result in higher than normal monthly payments, but it does make it more affordable to pay off your old loan if you have negative equity. It also allows you to trade in your vehicle for something newer, more reliable, or equipped with the latest safety features. 

Trade in a Financed Car for a Leased or Purchased Vehicle Today at Nissan of Downtown L.A.!

Ready to trade in your financed car for a new leased or purchased vehicle? Browse our new inventory now and check out our new vehicle specialsto save more on your next vehicle. Don’t hesitate to apply for financing online.