Can You Trade in a Financed Car at Peter Boulware Toyota?
Looking to purchase a new Toyota vehicle but uncertain if you can trade in a financed car? Not to worry – you can absolutely trade in a financed car! However, the loan on your current vehicle doesn’t disappear just because you’ve traded it in – you must pay off the balance. How can you trade in a financed car that still has a loan balance? Find out with the finance experts at Peter Boulware Toyota below!
How Can You Trade in a Financed Car? Step-by-Step Guide
- Calculate the remaining balance on your auto loan, which is typically listed as part of your monthly payment.
- Use a service like Kelley Blue Book to estimate the value of your current vehicle. It’s important to keep in mind that this is just an estimate and that the dealership will establish what the car is worth after a physical inspection.
- If the trade in offer from Peter Boulware Toyota is worth more than the amount left on your auto loan, then you’ll have money leftover to put towards purchasing a new vehicle. For example, if you still owe $7,000 on your car in Thomasville, and the dealer offers you $8,000 to buy the car, the loan can be paid off and you’ll have $1000 to contribute towards your next car.
- If the trade in offer is worth less than the remaining balance on your auto loan, then you’ll have negative equity – or money that you still owe on your previous car. You can either pay off the remaining balance before buying your next vehicle or roll over the balance into your next auto loan, depending on the dealer.
What Does it Mean to Roll Over a Loan
Rolling over a loan refers to the situation where a dealership will pay off your old loan, regardless of the balance. However, there’s a catch! The price gets added to your new loan on the next vehicle you purchase, so you have to pay the dealership back for the old loan and pay off the new car loan simultaneously. Be careful before agreeing to roll over a loan!
Purchase Your Next Vehicle at Peter Boulware Toyota Today!
Now that you know you can trade in a financed car for a lease or to put towards a down payment on a new vehicle, we strongly recommend getting in touch with us here at Peter Boulware Toyota today! Our finance specialists are more than happy to help you browse for new vehicle specials. If you have any questions about selling a car, credit scores, or how to fill out our online financing application, please don’t hesitate to reach out!
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