Can You Trade In a Financed Car?

New Orleans car shoppers who drive vehicles with an outstanding lien often wonder, “can you trade in a financed car for a lease or new loan?”. The answer to this question, in many cases, is yes! Still, just because you trade in a financed car doesn’t necessarily mean your loan obligation will be expunged. 

Sometimes, you can trade in a financed car and have the loan balanced rolled into a new one. In other cases, you’ll be responsible for paying it off separately. In the best scenarios, if your vehicle value is more than your loan, you could collect some cash. Learn the answer to the question “how does trading in a financed car work?” or contact us to start exploring your options!

How Does Trading In a Financed Car Work?

When you want to trade in a financed car in New Orleans or Metairie, there are several important things you should do. Here’s a list that makes taking care of them all just a little bit easier:

1. Find out how much remains on your car loan. Often, you can find this amount stated on your monthly statement.
2. Use our online trade valuation tool to see your vehicle’s current estimated book value. 
3. If you owe less on your loan than your car is worth, congratulations; you’ll have money leftover that will go towards purchasing a new car from us at Leson Chevrolet Company, Inc.!
1. Say for example, you owe $7,000 on your car in Metairie, and the dealer offers you $11,000 to buy the car, the loan can be paid off and you’ll have $4,000 to contribute towards your next Chevrolet. 
4. If your outstanding loan is more than your vehicle’s trade-in value, then you’ll still owe money on your car. In other words, you’ll be “underwater”, or have negative equity. You will have to either pay this off, or see if you can get it rolled into your next auto loan.

What Does “Rolling Over” A Loan Mean?

As you’ve probably been able to tell by reading the above comment, rolling over a loan is when a dealership pays off your old loan no matter how much you owe. However, what really often happens is they pay it off and the old balance is added on to your new loan. In other words, you’ll still be responsible for the loan, in essence. That’s why it’s most financially prudent to buy a new car once your old one is paid off, or choose leasing instead if you like to upgrade cars frequently.

Find Your Next New Chevy for Sale in Harvey

Ready to trade-in your old vehicle for something newer in Metairie or Belle Chasse? Browse our new inventory and then contact our finance department for additional car buying and trading tips.