Can You Trade In a Financed Car?

Yes, you can trade in a financed car — but you are still responsible for paying off the remaining balance. Learn more about your options for trading in your car that still has a loan balance with our Soquel Honda dealership, and don’t hesitate to give us a call if you have any questions about car loans, obtaining financing with bad credit, leasing vs. financing, credit scores, and more with the financial experts at Ocean Honda Santa Cruz.

How Does Trading In a Financed Car Work?

1. Know your remaining balance, which can be found on your monthly statement.
2. Use our Value Your Trade tool to estimate your current vehicle’s value. Remember, this is an estimate, and we won’t know your vehicle’s worth until it’s been physically inspected.
3. If the remaining amount of your auto loan is less than the trade in offer, then you’ll have money leftover that will go towards purchasing a new car from the dealer. So, if you owe $7,000 and you’re offered $8,000 for the vehicle, you can use the $1,000 to put towards your next vehicle.
4. However, if the remaining balance is more than the trade-in offer, you can either pay off the remaining balance before buying your next vehicle or roll over the balance into your next auto loan.

Rolling over simply means that the dealership will cover the balance. However, the balance rolls over into the new loan, so you’ll pay back the old and new loan at the same time.

Visit Ocean Honda Santa Cruz for Your Next Vehicle

When it’s time to trade in a financed car for your next new or used Honda, be sure to check out our new and used vehicle specials in Soquel. You can also rely on our team for additional car buying tips to prepare for your next purchase! Contact us if you have any questions in the meantime.