Can You Trade In a Financed Car in Cary, NC?

If you still owe money on the vehicle you’re currently driving around Cary and Apex but you wish to upgrade to a new ride, can you trade in a financed car? You most certainly can! We make the process simple at Hendrick Chevrolet Cary and we welcome financed trade-ins. However, when trading in a financed car, it’s important to understand that you’ll still need to finish paying off the original loan—often, the remaining amount to pay off is simply carried over into your new finance plan. Still asking yourself, “how does trading in a financed car work?” Learn more in our guide below!

How Does Trading In a Financed Car Work at Our Dealership?

No matter what car dealership you visit in the greater Raleigh area, trading in a financed car will include the following steps:

1. Determine exactly how much is still owed on your loan. Your most recent monthly statement will tell you how much.
2. Our trade-in value calculator or similar tools from resources like Kelley Blue Book can give you an instant estimate of how much your trade-in car is worth. Remember: this is merely an estimate and the actual amount you’re quoted once the car is inspected and appraised at the dealership may differ.
3. If you owe less on the loan than your vehicle is determined to be worth, you’re in a great spot! This means you can use the difference as a credit toward your next purchase.
4. Example: if you owe $4,000 on your car and the dealer offers you $6,000 to buy the car, the loan can be paid off completely and you’ll have $2,000 to direct toward your new purchase.
5. If you discover you owe more on your loan than your vehicle is currently worth, this is known as negative equity. Typically, you’ll have two options: 1. pay the remainder of the loan balance in full before trading in for your next vehicle, or 2. roll over the previous loan balance into the new loan once it’s drawn up at the dealership.

What Does it Mean to Roll Over a Loan?

Sometimes, customers misconstrue the offer to roll over their loan as the dealership offering to pay off the remaining balance for them as part of the trade-in deal. In reality, you are still responsible for paying off that amount; it’s just paid back to the dealership rather than the original lender, made possible by the dealership adding the amount into the price of your next vehicle.

We’ll Buy Your Vehicle at Hendrick Chevrolet Cary!

Whether you wish to trade in a financed car for a lease or you want to trade in and start a new loan, Hendrick Chevrolet Cary is here to help. We have a premium selection of new Chevy vehicles and pre-owned models in Cary, NC! Our team will go the extra mile to ensure you find the right vehicle for your lifestyle at a price that fits your budget. For more information on trading in a financed car, contact us at your convenience to start a conversation.