Can You Trade in a Financed Car?

You can definitely trade in a financed car. But remember, your loan obligation will not just go away. Rather, you’ll either have to pay it off or have it rolled over. Let’s explore how the process of trading in a financed car usually works here at Toyota of Downtown LA so you can get a better idea of whether or not it’s right for you. Have questions while you read? Contact us anytime and we’ll be more than happy to help you out. 

How Does Trading in a Financed Car Work?

The process of trading in a financed car generally works more or less the same as trading in a car without any liens attached to it, with the exception that liens must be paid off or rolled over. Here’s how it works:

1. First, determine the remaining balance on your auto loan. It is usually listed on your monthly statement.
2. Use our Value Your Trade tool to get an estimate of your current vehicle’s value. Note that this is just an estimate, and it’s only official once your car has been inspected at our dealership to verify its condition. 
3. If the outstanding amount due on your auto loan is less than the official trade-in offer you get from our Los Angeles dealership, then you’ll have surplus money to apply toward a new vehicle. If it’s less, you’ll owe money. 
4. If you owe money on your car, this is called negative equity. Usually, you can either pay off negative equity in full prior to trading in the vehicle, or you can get the loan rolled over.

What Does “Rolling Over” a Loan Mean?

Rolling over a car loan is when a car dealership like us here at Toyota of Downtown LA pays off the entirety of your old loan for you, and then applies the same amount toward a new vehicle loan. This is often useful if you need a new car now for any reason, from looking for something bigger to accommodate a baby on the way, to wanting something with the latest active safety features to avoid future collisions. 

Rely on Toyota of Downtown LA for Your Next Vehicle

Ready to trade in a financed car for lease today? Here at Toyota of Downtown LA, we’ve got you covered! Browse our used or new vehicles for sale and then be sure to also view our new car specials and used car specials to save more on your next purchase!