Can You Trade In a Financed Car?

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Can you trade in a financed car? The answer is yes, absolutely! However, you should know that trading in a financed car doesn’t make the loan go away: You’ll still be on the hook for the remaining balance, even after you’ve turned the car into the dealership. Most dealerships, including those in the Auffenberg Dealer Group network, will offer you several paths forward. We’ve put together a short guide to your options, so you can come to the dealership feeling prepared.

How Does Trading In a Financed Car Work?

  1. As with any other trade-in, the person who takes the vehicle off your hands will offer you money in return. 
  2. In some cases, that lump sum will cover the remaining balance on your loan — you might even get some extra that you can apply to your next purchase!
  3. In other cases, the money you receive won’t be enough to eliminate the remainder. This is referred to as negative equity. What happens next depends on several factors:
    • Are you hoping to trade in a financed car for a lease? You’ll have to make lease payments and continue to pay off the old vehicle with separate payments.
    • Are you planning to finance and purchase a new vehicle? If so, the dealer may offer to “roll over” your old balance and tack it onto the new loan, leaving you with one simple monthly payment.

Have questions about your payment? If the dealership “rolls over” your remaining loan balance onto a new loan, things can get a little complex! Take advantage of our car payment calculator or contact our team for assistance.

Woman Trading in Car

How Can I Maximize the Value of My Trade-In?

Now that you’ve answered the question, “Can you trade in a financed car?” you’re probably wondering how to reduce the potential threat of negative equity. If you think you might owe more on your financed vehicle than it’s worth, you’ll need to take steps to maximize the value of your trade-in:

  • Do your research and find out what similar models have been going for. You’ll be more prepared to negotiate.
  • Use the Auffenberg Dealer Group Value My Trade-In tool to get an estimate of what your car is worth.
  • If your vehicle has received all of its necessary maintenance, the dealer will have little trouble passing it on–and they’ll offer you more money as a result.
  • Clean and detail your car before it goes up for sale. If you bring in a vehicle that’s ready for the lot, you’ll save the dealer time and energy, and you’re likely to reap the rewards.

Can You Trade-In a Financed Car at Auffenberg Dealer Group?

The Auffenberg Dealer Group is more than happy to take a financed car off your hands, and the friendly faces on our finance team will help you move forward with a plan that fits your needs and budgets. 

Don’t waste time with private sellers near East St. Louis and Lebanon. Come to the trade-in experts in O'Fallon and start a new adventure today. Since we offer a wide variety of used vehicles priced under $9,000, there’s no better place to look!

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