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Trading in a Financed Car: Is It Possible?

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Absolutely, you can trade in a financed car for a lease, or for another vehicle! But there’s an important thing to remember: trading in your car doesn’t make the loan disappear; you still need to pay off the balance. If you’re considering trading in a car with an outstanding loan, discover your options and get expert advice from the authorized Land Rover finance center near Venice. Whether you have questions about car loans, interest rates, selling, leasing, or credit scores, we’re here to help.

 

 

How Does Trading in a Financed Car Work?

So, how does trading in a financed car work? Here are the steps to follow for trading in a financed car: 

  1. Determine Your Loan Balance: Find out the remaining balance on your auto loan. Typically, this information is available on your monthly statement.
  2. Value Your Trade: Use tools like our trade-in calculator or trusted resources like Kelley Blue Book to estimate the value of your current vehicle. Keep in mind that this is just an estimate; the dealership will conduct a thorough assessment to determine the car’s actual worth.
  3. Assess the Numbers: If the remaining loan amount is less than the trade-in offer from the dealership, you’ll have extra funds that can go toward your new car. For example, if you still owe $7,000 on your Land Rover in Marina Del Rey, and the dealer offers $8,000 to buy it, you can pay off the loan and have $1,000 left to put toward your next vehicle.
  4. Dealing with Negative Equity: When the remaining loan balance exceeds the trade-in offer, you’ll have negative equity. You can either pay off the difference before purchasing your next car or discuss rolling over the balance into your new auto loan with the dealer.

What Does “Rolling Over” A Loan Mean?

Rolling over a loan is a process where a dealership offers to pay off your existing loan regardless of the amount you owe. However, this can be deceptive because the old loan’s balance is added to your new loan for your next vehicle. In essence, you end up paying back the dealership for the previous loan while simultaneously paying off the new one. When you want to trade in a financed car for lease, it’s important to keep these ideas in mind as you proceed forward. 

Rely on Land Rover Santa Monica for Your Next Vehicle

When you’re ready to trade in your financed car, whether for a lease or a new Land Rover, check out our outstanding new vehicle specials in Santa Monica. For more valuable car buying tips and to prepare for your next purchase in Malibu, start the financing process online and count on us for a seamless and informed experience!

 

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