Can You Trade in a Financed Car?

2019 Toyota 4Runner Trunk Open

Can You Trade in a Financed Car?

The answer is “yes!” Trading in a financed car is possible, but keep in mind that the loan on the car loan won’t go away because you’ve traded in the car. The balance will still need to be paid. Our finance experts are here to answer your questions, such as, “How does trading in a financed car work?” Read on to learn more about the process of trading in a financed car and what you could possibly gain from doing so! 

How Does Trading in a Financed Car Work?

It’s simpler than you might think! Follow the steps below to trade in a financed car for lease or purchase: 

  1. Figure out how much is left on your car loan. You can find the balance on your monthly statement. 
  2. Our value-your-trade tool or an online source like Kelly Blue Book can help you estimate the value of your car. Keep in mind that these tools give you an estimate; we’ll need to complete an inspection to determine the actual value of the car. 
  3. If the remaining amount of your auto loan is less than the trade-in offer you receive, you’ll have money leftover. You can put that money toward the purchase of a new car from John Elway's Crown Toyota. 
  4. On the flip side, if the balance on your car loan is more than the trade-in offer you receive for your car, then you have what’s called “negative equity.” In this case, you can pay off what’s owed on your auto loan before buying another car, or you may be able to roll the balance over into a brand-new loan. 

What Does “Rolling Over” a Loan Mean?

Rolling over a car loan involves combining your old car loan’s balance with the new car loan’s balance. Again, that doesn’t mean the old loan goes away; the outstanding balance is being added to your new loan’s balance. So, whether or not you choose to roll over your loan, you’ll still be responsible for repaying your old loan. 

Trade in Your Vehicle at John Elway's Crown Toyota

Have a financed car you’d like to sell? John Elway's Crown Toyota is here to help you get a competitive trade-in value for it. If you have any questions about trading in a financed car, don’t hesitate to contact us online or call us at (909) 515-8404. 

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