How to Trade in a Car That’s Not Paid Off?
Are you wondering if it’s possible to trade in a financed car that’s not paid off? Yes, you can! However, the loan on your vehicle will not go away once you trade in that car; you still need to pay off that balance. The finance team at Ocean Honda of Ventura has all of the details on how you can trade-in your financed car with Ocean Honda of Ventura and upgrade your ride for a more enjoyable driving experience. Feel free to contact us if you have any questions about auto loans, interest rates, and trading in your vehicle — even if you have not-so-good credit.
How Does Trading In a Financed Car Work?
- Figure the amount that you still owe on the auto loan. You can find the loan amount listed on your monthly statement.
- Utilize online shopping tools like our Value Your Trade tool to get an estimate on the value of your current vehicle, which can be used towards your next new or used vehicle purchase. Keep in mind that it’s just an estimate, and it’s only once your vehicle has been physically estimated that the dealership will determine what the car is worth.
- If the remaining amount of your loan balance is less than the trade-in offer from the dealership near Santa Barbara, you will have money that can go towards your vehicle purchase. For instance, if you owe $7,000 and your vehicle is worth $8,000, you have $1,000 to use towards your next car.
- If the remaining balance of your car loan is more than the trade-in offer, then you still owe money for that car loan. You can pay off the remainder in full before buying or leasing your next car, or you can rollover the balance into your next auto loan with Ocean Honda of Ventura.
What Does “Rolling Over” a Loan Mean?
You’re probably wondering what rolling over the loan amount means. This is when the dealership handles the payoff amount, no matter how much you owe. That price will then get added to the new loan on your next vehicle purchase, which means you’re paying the dealership back for the old loan at the same time that you’re paying off the loan on your new vehicle.
Get Financing Tips from the Experts at Ocean Honda of Ventura!
Still have questions about how to trade in a car that’s not paid off? Give us a call! We work hard to make your car-buying experience as stress-free and hassle-free as possible. Between our competitive prices and vehicle specials, you can rest assured that you’re getting the best deal possible with us! Get things started by getting pre-approved for financing online.
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