Can You Trade In a Financed Car?

There are plenty of reasons you might want to trade in your current vehicle in Concord. It could be that a new model has caught your eye or that your family has grown and you need more space and utility than your current vehicle can offer. No matter what the reason, it’s important to know: can you trade in a financed car? Yes! Cars with active loans can still be traded in, with the catch that the entire loan balance still needs to be repaid. Learn more about your options and find out how trading in a financed car works with the finance team at Hendrick Cadillac Monroe.

How Does Trading In a Financed Car Work?

To trade in a financed car for a lease or new vehicle loan, follow these simple steps: 

1. Find out what the remaining balance is on your current vehicle loan. You can find this on your monthly statement or your loan servicer’s website. 
2. Use our Value Your Trade tool to get an estimate of your vehicle’s current value. This number is only an estimate and may change based on the physical condition of your vehicle. 
3. If the estimate you receive is more than the current amount left on your auto loan, you’ll be able to use that money to pay off your loan and any remaining leftovers to put toward your next purchase.
4. If the estimate you receive is less than the current amount left on your auto loan, then you’ll still owe money on your current car. This negative balance is called “negative equity” and you’ll have to pay the remainder of the balance before you can buy your next car. You may also have the option to roll over the balance of your current loan, depending on the dealer you choose in Pineville.

What Does “Rolling Over” A Loan Mean?

If you have negative equity when trading in your vehicle, a dealer may offer to “roll over” the loan for you. Don’t mistake this as an offer to pay off the loan– it is instead an offer to put the remainder of your current loan onto your new loan. This increases how much you owe overall and may affect both your interest rate and monthly payments. 

Trade In a Financed Car at Hendrick Cadillac Monroe!

Now that you know more about trading in a financed car in Charlotte, come down to Hendrick Cadillac Monroe and explore our inventory of new vehicles and take a test drive in Monroe! Contact us online to set up your appointment and be sure to browse our other car-buying tips to get the most out of your next car purchase at Hendrick Cadillac Monroe.