Can You Trade in a Financed Car? | Bob Moore Auto Group

If you’re asking, “Can I trade in a financed car?” the answer is yes! Before you trade in your car with a note, there are some important considerations. Your trade-in situation will always vary based on the car you are trading in, your note on the vehicle, and the car you’re trading in for.   Whether you’d like to trade in a financed car for a lease or you’re considering a negative equity trade-in, Bob Moore Auto Group can help. We have a network of dealerships and Bob Moore Finance Centers throughout the Oklahoma City metro, from Norman to Edmond. We’re here to help you find your dream car while ensuring you have all the information you need to make an informed decision.

How to Trade in a Financed Car

Drivers often choose to move on from their old car before the total balance of their last loan has been paid off, a term commonly referred to as rolling over. The idea is that you roll over one loan into another. When you bring in a financed trade-in, we’ll either pay you cash value for your car, or we’ll help you trade in your car for a new one, applying that payment to your new loan, which reduces the cost of the new loan in most cases. Trading in a financed car is just like trading in any other car. You’ll want to check your loan balance and the value of your car to see if you have positive or negative equity, and then you’ll want to get an offer from a dealership. It’s typically advised to get multiple offers to ensure you get the best deal on your trade-in. 

Positive and Negative Equity Trade-Ins

How soon can you trade in a financed car? Well, the answer is as soon as you have the title in your name. In most cases, though, that’s probably not the optimal decision. It’s more advisable to wait until you’ve built some positive equity in the car, so you can use that equity to help pay for your new car. Equity is measured by subtracting the loan of the car from the car’s value. Positive equity means you will gain money on the transaction, while negative equity means you owe more than the car is worth. If you trade in your car immediately or have a lengthy loan term, you run the risk of trading your car in with negative equity. While you can trade in your vehicle with negative equity, you’ll either need to pay the balance of the negative equity when you trade your car in or roll the negative equity into your next loan, increasing the cost of your new vehicle. In most cases, we would recommend waiting until you have positive equity before trading your car in so your last car doesn’t increase the cost of your new one. For more information about vehicle trade-ins in Oklahoma City, visit a Bob Moore dealership.

Financing with Bob Moore

At Bob Moore Auto Group, we want to help you find a car you love with a financing plan that makes sense for you. We want to ensure you have all the resources you need to make an informed decision, so be sure to use the resources on our website to get an idea of how trading your car in will impact your finances. Our online trade-in calculator will give you an estimate of your car’s value, and you can use that information in our payment calculator to get an idea of what payments on your new vehicle might look like. We’re able to help with a variety of financing situations, including trading in a paid-off car. With 15 dealerships representing 18 brands across Oklahoma City, Norman, and Edmond, Bob Moore Auto Group has plenty of new and used cars for sale to explore. Explore our cars for sale in OKC today!