Can you trade financed car

Yes, you can! So, how does trading in a financed car work? Whether you trade-in a financed car for lease or you buy a new vehicle, the process is similar. Rolling over a loan is what happens when a dealership offers to pay off your old loan no matter how much you currently owe. Ready to step into a new vehicle, regardless of whether or not your current car is paid off?

Sacramento Chrysler Dodge Jeep Ram can help. Rely on our finance center for all your questions about how auto financing works or how to trade in your car. Although its capability will vary by configuration, the RAM towing capacity can reach up to 12, pounds when properly equipped. Check out our blog post No Money Down Car Loans for more information on the benefits of a down payment.

In this case, what usually happens is your old loan becomes part of your new loan. At Birchwood Credit Solutions, we encourage our customers to find their freedom by driving the vehicle that fits their lifestyle.

These are our top 3 things to help you feel ready-to-go when you step foot into our dealership:. As the name implies, positive equity is a good thing. When you trade in your vehicle, the dealer may apply any equity you have toward the purchase of the new vehicle.

This reduces the amount you need to finance. You can trade in a financed car any time, but you may want to wait a year or more — especially if you bought a new car.

Cars depreciate over time. Depending on the size of the down payment you made on your loan and how quickly your car has lost value, you may find that you have negative equity in the vehicle almost immediately. It pays to get a good trade-in value — the higher the amount, the more you can potentially use toward your new car purchase.

Here are some steps to take. This includes your loan balance plus any interest and fees that have accrued, so it may differ slightly from your loan balance. Contact your lender to find out your payoff amount. The process of trading in your car while you still owe money on it is simple and also a very common occurrence. When you trade in any vehicle the dealership will minus the value of your current vehicle off the price of the new one you wish to purchase.

By trading in your current car that you owe money on you simply add one more step to that equation. To trade in a car you are still financing, the dealership will consider the value of your trade-in, minus the amount you owe, and subtract that amount from the price of your new car. In some cases, this might mean that you bring forward negative equity from your vehicle, meaning that you bring forward some of what you owe on your current vehicle and apply it to the loan for your new vehicle.

Negative equity can be a drawback to financing a new vehicle when you still owe money on your current vehicle. This happens when you owe more on your car than what you would be able to sell it for.