Can You Trade In a Financed Car?

Can you trade in a financed car? Absolutely! But trading in a financed car still means dealing with the outstanding balance on your loan. Do you want to trade in a financed car for a lease in Harvey or to buy a new vehicle? Ray Brandt Kia covers all the steps for trading in a financed car below! 

How Does Trading in a Financed Car Work?

So, how does trading in a financed car work, especially for buying vs. leasing? The first thing that Marrero drivers can do is value their trade online to see the current value of their vehicle. It may not be exactly what you get when you trade in a financed car for a lease, but it’ll give you a good place to start. After that, here are some useful steps for trading in a financed car: In select cases, the trade-in value for your vehicle will cover or exceed the remaining balance of your loan If it doesn’t, you’ll have what’s called negative equity. Here’s what that means: 

• Leasing: How does trading in a financed car work if you’re trying to lease? If you want to trade in a financed car for a lease, your lease payments and your remaining balance payments will be separate. 
• Financing: So, how does trading in a financed car work if you’re trying to finance another car? If you’re looking to finance a vehicle, the dealer can “rollover” the old balance and put it on your new loan so that it’s all part of the same monthly payment. 

If you’re trying to calculate what kind of payment plans to expect, use tools like our online payment calculator.

Maximizing Your Trade-In Value 

Now that you know the answer to the question, “Can you trade in a financed car?”, you probably are looking to avoid negative equity. Here are some steps to take over the course of your car ownership: 

• Research your models and similar models before you go in for a trade. 
• Get all the recommended maintenance on your vehicle to keep it in really good condition. 
• Make your car look ready to go right on a car lot. Clean it and detail it so that the dealer doesn’t have to do that themselves. 

Consult the Finance Center at Ray Brandt Kia

The finance center at Ray Brandt Kia is happy to help drivers from Harvey to New Orleans with the ins and outs of car leasing and financing. Check out our car buying tips and contact us today if you have a car to trade-in and we’ll know what to do.