Can You Trade In a Financed Car?

July 25th, 2021 by
Excited Couple Reviewing Trade in Offer with Salesman

Yep! Trading in a financed car in greater North Wales is a straightforward process. You’ll still be responsible for the remaining balance, but we can absorb the remainder of your loan in the balance for your next vehicle. Whether you’re trading in a financed car towards a vehicle you want to buy, or you’re trading in a financed car for a lease, read on to learn about how trading in a financed car works. Then, get in touch with the North Penn Mazda finance department in Colmar to take the next step, and don’t forget to value your trade

How Does Trading In a Financed Car Work?

  1. Find the remaining balance on your, which is usually listed on your monthly statements. 
  2. Then, use our trade-in value tool to get an estimate of the market value for your current vehicle. Have the model inspected by our technicians, so they can verify its quality. Negotiate with us and accept an offer.
  3. If you owe less on your current loan than the vehicle is worth, then you can put the difference towards a new or used car on our lot. For instance, if you owe $7,000 on your current vehicle, but it’s worth $8,000, that leaves you with $1,000 to use towards a down payment on a new vehicle! 
  4. If you owe more on your loan than your model is worth, you have negative equity. If the remaining balance of your auto loan is more than the trade-in offer, then you’ll still owe money on your car–this is called negative equity. You can still trade-in your car, but your lender will roll the remainder of your balance over into your next loan. 

Schedule a Test Drive at North Penn Mazda in Colmar

If you have any further questions about how trading-in a financed car works, give us a ring at (215) 822-1361. We can walk you through all the steps of trading in a financed car, and make sure you take advantage of any applicable national offers or new vehicle specials on offer at our dealership near Chalfont! 

 

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