Can You Trade In a Financed Car?

Car Being inspected by magnifying glass

Have you ever wondered, “Can you trade in a financed car?” The answer is yes — but keep in mind that the loan on your vehicle won’t go away because you’ve traded it in. You must still pay off the balance. Learn more about your options for trading in a financed car here with Honda, and contact us if you have any auto finance questions. We’re here for you!

How Does Trading In a Financed Car Work?

  1. First, find out the remaining balance on your current loan. You can usually find it listed on your monthly statement.
  2. Use our Value Your Trade tool or one from another online service like Kelley Blue Book to get an estimate on the value of your current car. Remember, it is only an estimate, and the dealership in Helena will physically inspect and drive your vehicle to determine its value. 
  3. If the remaining balance of your auto loan is less than the trade-in offer from the dealership, you’ll have money left over to go towards the purchase of a new car from the dealer. For example, if you still owe $5,000 on your vehicle in Missoula, and the dealer offers you $7,000 to buy the car, the loan can be paid off, and you’ll have $2,000 to contribute towards your next car. 
  4. If the remaining balance of your car loan is more than the offer for your trade-in, then you still owe money on your car, and you have negative equity. Your options are to pay off the remainder in full before purchasing your next car, or you can rollover the balance into your next car loan.

What Does “Rolling Over” A Loan Mean?

Rolling over a loan is when the dealership agrees to pay off your old loan regardless of how much you owe. However, the price is added to the loan on the next car you buy, meaning you pay the dealership back for the old loan while you pay off the loan on your new Honda.

Shop For Your Next Vehicle at Honda of Great Falls

If you’re ready to trade in a financed car for lease or want to get behind the wheel of a new Honda, browse our extensive inventory and new vehicle specials. We are conveniently located near Lewistown and are happy to help you get into the car of your dreams. You can apply for financing online before you visit the dealership. Contact us today!

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