Can You Trade in a Financed Car?

If you’re looking to trade your current vehicle for cash even if it isn’t paid off, then you’re probably wondering if you can trade in a financed car. Not only can you trade in a financed car, but you can do so easily and get the best deal when you trade in your vehicle at Toyota of Santa Fe! How does trading in a financed car work? Learn how the process works with our finance center, then make the drive to our Santa Fe dealership, so we can make you an offer on your car. 

Trading in a Financed Car Step by Step

Trading in a financed car works just like trading in a car that’s paid off. The biggest thing you’ll have to keep in mind is that the remaining balance doesn’t simply go away once you trade in your car. With that in mind, here is how trading in a financed car works: 

1. Find out how much you have left on your current loan. You can usually find this amount on your monthly statements. 
2. Once you have your loan remainder, value your trade with our online tool to see what your car is currently worth. This is just a general estimate, but it will give you some bargaining power when you bring it in to our dealership. 
3. Bring your vehicle to our dealership, which is just a short drive from Albuquerque, and our team will have it appraised for condition, quality, and overall value. 
4. If the offer we make is more than what you have on your loan balance, then you can put that extra money towards the price of a new car. So, if you have $7,000 left on your loan and receive a trade-in offer of $10,000, then you’ll have $3,000 to put towards a new ride. 
5. If the offer you receive is less than your loan balance, then you’ll have what’s referred to as negative equity. 

So, can you trade in a financed car? You can, but if your car has negative equity, then the dealership will perform what’s called a “rollover.” 

What is an Auto Loan Rollover?

As mentioned previously, trading in a financed car doesn’t mean that the remaining loan balance goes away. If you have negative equity on your current car, then a rollover will be performed. This is when the loan balance amount is added to the price of the loan for your new car. So, you’ll pay off the loan of a new car plus the existing loan remainder of your old car. 

Trade in Your Car at Toyota of Santa Fe

Now that you know how trading in a financed car works, bring your vehicle to our dealership in Santa Fe for a great same-day cash offer. Contact us with any questions on the trade-in process, and let us help you get more out of your trade.