Can You Trade In a Financed Car?

Yes, you can trade in a financed car! At Hyundai of Hampton, we do our best to make trading in a financed car easy. How does trading in a financed car work? There are several ways to go about trading in a financed car, but all of them involve finding a way to pay off the loan on your old car. The finance department at Hyundai of Hampton can help! Learn more about your options when it comes to trading in a financed car today. 

How Does Trading In a Financed Car Work?

Suffolk drivers can follow these simple steps to get started on the process of trading in a financed car: 

1. Know the remaining balance on your auto loan. You can usually find it on your most recent monthly statement. 
2. Find out what your used car’s worth. Our free and simple tool will give you an estimate on your car’s value from home. You can also use resources like Kelley Blue Book to find out what similar cars to yours have sold for in your area. You do have to bring your car to us for an inspection to get the actual trade-in value. 
3. If you owe more on your auto loan than the trade-in estimate, you can use that money to pay off your old car and put any remaining cash toward your next vehicle. If, for instance, you owe $7,000 on your auto loan, and we offer you $8,000 in trade for the car, you’ll have $1,000 left to put towards your down payment of your new car. 
4. If you owe more on your car than the trade-in offer, that means you have “negative equity.” You have a couple of options in this situation: you can pay off your old car and buy a new one later, or you can roll the balance of your old loan into your new auto loan. We don’t recommend this unless you’re in dire need of a new vehicle. 

What Does “Rolling Over” a Loan Mean?

If you hear talk of “rolling over” a loan, it means that the dealership will pay off the old car loan and roll that amount into the new car loan. Essentially, the buyer pays the dealer back with interest for paying off the old car loan at the same time they pay the new car loan. 

Trade in Your Used Car at Hyundai of Hampton

No matter how you’re planning to purchase your next vehicle, let the finance team at Hyundai of Hampton help! Check out our other car-buying tips for helpful guides to when to sell a used car and more.