Can You Trade in a Financed Car?

“Can you trade in a financed car?” Yes! There are a variety of benefits and reasons why Gardena drivers may be considering trading in a financed car for lease or for a new vehicle. Trading in a financed car is a relatively straightforward process, but it depends on your financial situation. Learn more with Nissan of Torrance and explore the question, “How does trading in a financed car work?” Then when you are ready, start the car buying process in Torrance today! 

How Does Trading in a Financed Car Work?

When trading in a financed car, here are the steps for you to follow, whether you want to trade in a financed car for lease:

1. Check your monthly statement to determine the remaining balance on your auto loan.
2. Utilize our Value Your Trade tool or a similar service like Kelley Blue Book to estimate the value of your current vehicle. Keep in mind that this is only an estimate, and the dealership will need to conduct a physical inspection to determine the actual value.
3. If the dealership offers a trade-in value that exceeds the remaining balance on your auto loan, you’ll have funds remaining that can be applied towards the purchase of your new vehicle. For instance, if you owe $7,000 on your car in Carson and the dealer offers $8,000 to purchase the car, you can use the $1,000 towards your new car purchase.
4. If the remaining balance on your auto loan is greater than the trade-in offer, you have negative equity, which means you still owe money on the car. You can either pay off the balance in full before purchasing your next vehicle or have the option to roll over the remaining balance into your new auto loan with the dealership.

What Happens if You Roll Over on a Loan?

When a dealership offers to pay off your old loan regardless of the amount you owe and adds it to your new car loan, it’s known as rolling over a loan. However, this may not be as beneficial as it sounds, as it means you will have to pay off the dealership for the old loan and the new car loan at the same time.

How Does Trading in a Financed Car Work? Learn More with Nissan of Torrance!

When it comes time to trade in a financed car for lease, you can learn more with the team at Nissan of Torrance today! Contact us when you are ready to take the steps towards trading in a financed car in Torrance today!