Can You Trade in a Financed Car

Can you trade in a financed car for a lease or new vehicle in Keyport? Absolutely! And with our dedicated finance team at your side, the process is smooth and simple. So, how does trading in a financed car work? Walk through the steps below with Tom's Ford, then contact our office when you’re ready to get the ball rolling. We’re a short drive from Hazlet!

1. Find your monthly statement and determine how much you still owe on your loan.
2. Get an estimate on the value of your current car with our trade-in valuation tool. Please note that this value is subject to change, and we will determine your final trade-in offer upon appraisal.
3. Ideally, you want your trade-in value to be more than the remaining balance of your auto loan so you can put it toward your new vehicle purchase. (Example: if you still owe $5,000 on your car and the dealership is offering to buy it for $8,000, you can use the remaining $3,000 as part of your down payment on your next vehicle.)
4. Negative equity occurs when your auto loan balance exceeds your car’s current worth. You must pay off your car loan in full before financing or leasing a new vehicle, but there are options available if you cannot do so now.

Can you trade in a financed car with negative equity? Yes, but you are still responsible for paying off your balance in full. Most Middletown dealerships offer the option to roll over your loan. In other words, the dealership will pay off your balance and add that amount to the loan on your new vehicle. 

While trading in a financed car with negative equity isn’t the best option for every Red Bank driver, it can be beneficial if you’re struggling with your current car payments and want to downsize to a more affordable model. 

Tom's Ford is here to guide you through trading in a financed car, so contact us today to get started! We’ll be happy to answer any questions and help you make the right decision for your needs and budget.