Can You Trade in a Financed Car?

The short answer is yes! Trading in a financed car is a viable option for many Providence drivers as long as you remember that your loan doesn’t go away after you trade in your vehicle. The team at INFINITI of Warwick’s finance center has put together a guide on how to trade in a financed car for lease, including the various options you can take depending on your remaining loan balance. 

How Does Trading in a Financed Car Work?

1. Calculate how much you still have to pay on your loan, which you can usually find on your monthly statement.
2. Estimate the value of your trade-in, either using our Value Your Trade tool or going through a third-party service like Kelley Blue Book. Keep in mind that the number you get is an estimate, not a confirmed value, and you’ll have to get your car inspected by the dealership to get a hard number.
3. If your trade-in value is higher than your remaining loan balance, you’ll get the extra money to put towards your next vehicle at the dealership. For example, if your current vehicle is valued at $10,000 but you only owe $8,000 on your loan, you’ll get $2,000 towards your next car!
4. If your trade-in value is lower than your remaining loan balance, you’ll be in what’s called negative equity. This means you still have money to pay off when you trade in your vehicle. Depending on what the dealer offers you, you can either roll the remaining balance over into your next loan or pay the remainder in full before buying a new vehicle. We’ve got more information on rolling over a loan below.

What Does “Rolling Over” a Loan Mean?

When you roll over a loan, the dealership pays off the remaining balance on your old loan regardless of the amount. However, they add the balance to your new vehicle’s loan – so you’re on the hook to pay the new loan amount and the old loan combined. This is a realistic option for plenty of Coventry drivers, but you should carefully consider your financial situation before making any commitments. 

Rely on INFINITI of Warwick for Your Next Vehicle

Whether you’re looking to trade in a financed car for lease or check out a new vehicle, INFINITI of Warwick is here to help! You can contact our office anytime with questions or for more information about the financing process. We also have new vehicle specials updated all the time if you’re looking to save on your next INFINITI, and we have plenty of other car buying tips, including advice on leasing, financing, and more.