Can You Trade In a Financed Car?

Tiny car with calculator

So, can you trade in a financed car? Yes! However, it is important to understand that you still have to pay off the balance on your car loan, as it does not disappear because you’ve traded it in. Learn more about trading in a financed car with the experts at the Ford of Latham finance center below! For more information about trading in a financed car near Troy, feel free to contact us anytime!


How Does Trading In a Financed Car Work?

  1. Calculate how much you still owe on your loan. You can usually find this in your monthly statement that comes in the mail. 
  2. It’s important to know exactly how much your vehicle is worth, as it helps you negotiate the offer received on your current vehicle. You can use tools from trusted sources such as Kelley Blue Book or Edmunds. You can even use our value your trade tool to get your vehicle’s value in just minutes.
  3. If you have less left on your loan than the dealership offers, you will have some money to put toward a new vehicle on the dealer’s lot. 
  4. So, if you owe $9,000 on your current vehicle, and you receive a $10,000 offer from the dealer, you’ll have an extra $1,000 to spend on your new vehicle.
  5. If you have more left on your loan than your trade is worth, you will have to pay the difference, this is called having negative equity. You can either pay off the rest of the loan or have the dealer tack this amount onto the new loan, which is called rolling over the balance.

What Does it Mean to “Roll Over” A Loan?

When learning more about trading in a financed car, you may come across the term “rolling over” a loan. This means that the dealership will pay off your old loan, and add the difference to your new car loan. So, you still have to pay off the remaining loan and the loan on your new car as well. 


Learn More About Vehicle Financing at Ford of Latham!

If you’re ready to trade in a financed car for lease, come stop by and see us at Ford of Latham for your appraisal. While you’re here, be sure to browse our new vehicle inventory to check out any new vehicles on our lot that fit your lifestyle. Be sure to take advantage of our new vehicle specials to save more near Schenectady! We are also happy to walk through how to finance a car with no credit if you’d like.

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