Can You Trade In a Financed Car?

You can definitely trade in a financed car, but how does trading in a financed car work? Well, keep in mind that the loan on your vehicle doesn’t go away because you’ve traded it in; you still have to pay off the balance. Explore the options for trading in a financed car that still has a loan balance with your local authorized Genesis finance center, and contact us if you have any questions about car loans and interest rates, selling a car, leasing a car, credit scores, and more in Henderson. 

How Does Trading In a Financed Car Work?

Follow these steps to trade in a financed car for lease or on a new loan. 

1. Determine the remaining balance on your loan. It is typically listed on your monthly statement.
2. Use our Value Your Trade tool or one from a service like Kelley Blue Book to get an estimate on the value of your current vehicle. Note that this is simply an estimate, and it’s only once the vehicle has been physically inspected that the dealership will establish what the car is worth. 
3. If the remaining amount of your auto loan is less than the trade in offer from the dealership, then you’ll have money leftover that will go towards purchasing a new car from the dealer. 
1. For example, if you still owe $7,000 on your car in North Las Vegas, 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. 
4. If the remaining balance of your auto loan is more than the trade in offer, then you’ll still owe money on your car–this is called negative equity. You can pay off the remainder in full before buying your next car, or you may have the option to roll over the balance into your next auto loan with the dealer.

Trading in a Financed Car: “Rolling Over” 

Can you trade in a financed car when you still owe on the loan? Yes, an option you’ll have is rolling over a loan. Rolling over a loan is when a dealership says they will pay off your old loan no matter how much you owe. When you trade in a financed car for lease or another financed vehicle, you’ll actually have the price added to your new loan on the next car you buy. This means you pay the dealership back for the old loan at the same time that you pay off the loan on your new vehicle.

Can You Trade in a Finance Car at Genesis of Las Vegas?

Trading a financed car with Genesis of Las Vegas is easier for Paradise drivers than you’d expect. Be sure to check out our new vehicle specials in Las Vegas. If you still have questions about how trading in a financed car works, You can contact our team today. You can also rely on more car buying tips to prepare for your next purchase in Paradise. Then, apply for financing online to get the process started! Trade in a financed car for a lease with Genesis of Las Vegas today.