Can You Trade in a Financed Car?

So, can you trade in a financed car? Yes! In fact, trading in a financed car is very common. However, it is important to note that even though you’ve traded in your vehicle, you are still responsible for the remaining balance on the loan. Learn more about the options available to you when trading in a car with the experts at the North Freeway Hyundai finance center. If you have any other questions about trading in a financed car in Houston, like how to get a used car ready to sell, feel free to contact us anytime!

How Does Trading in a Financed Car Work?

1. Make sure you know exactly how much you owe on your current loan. You can find this information on your monthly statement. 
2. You can use our easy-to-use Value Your Trade tool or one offered by other industry leaders such as Kelley Blue Book or Edmunds. However, it is important to note that this is merely an estimate, and the final determination of your vehicle’s value is dependent on the appraisal. 
3. If you owe less on your current loan than your trade-in offer, you can put that money towards a new car. For example, if your vehicle is worth $5,000, and you still owe $4,000 on the loan, the $1,000 difference can go towards a new car.
4. If the balance on your current loan is more than the value of your vehicle, you will need to pay the remaining balance, as this is considered negative equity. You can either pay off the loan before purchasing your new vehicle or add that amount to your new loan at the dealership.

What Does “Rolling Over a Loan” Mean?

“Rolling over a loan” means that the dealership pays off the remaining balance on the auto loan. However, keep in mind that this remaining balance does not simply disappear and is instead added to the new loan, which means you’re paying off the new loan and previous loan at the same time.

Trade in Your Used Car at North Freeway Hyundai

Now that you know how trading in a financed car works, visit North Freeway Hyundai in Spring for more information. Check out our new vehicle inventory online, and visit our finance center to decide what is best for you when trading in your financed car. You can even apply for financing online before visiting our Spring car dealership!