How to Trade in a Car That’s Not Paid Off

August 3rd, 2021 by

Tiny car with coins and finance paperwork

If you’re unsure of whether you can trade in a financed car, rest assured that it’s a simple process and Victory Honda of Plymouth can help you every step of the way. The main thing to keep in mind is that your loan balance doesn’t disappear, but we can deduct the remainder from our trade-in offer or fold it into the next loan. Read on to learn about the ins-and-outs of trading in a financed car. Then, explore our new vehicle specials and get in touch to book some test drives near Ann Arbor!

How Does Trading In a Financed Car Work?

  1. First, Detroit drivers will want to check their last monthly statement to see what the remaining balance on their loan is.
  2. Then, you’ll want to use our trade-in value tool to get a quote from Kelley Blue Book. Please note that while you can get a very specific quote on the value of your model, given its year, trim, add-ons, and condition, our mechanics will need to inspect and verify the condition of your vehicle.
  3. If the remaining balance on your loan is less than the trade-in offer from the dealer, you’ll have some leftover money to use as a down payment. For instance, if you have $5,000 left on your loan, and you get a trade-in offer of $7,000 for your current vehicle, you’ll have $2,000 left over to use as a down payment on your next car!
  4. If, however, our trade-in offer is less than the remaining balance on your loan, we recommend you pay off the remainder before buying your next car, as you’ll essentially pay us negative equity to take the car off your hands. If you are eager to switch vehicles, however, we can roll the left-over balance into your next car loan.

Need Help Trading in a Financed Car?

Now that you know that you can trade in a financed car, and you know how trading in a financed car works, if you’re looking to trade in a car that hasn’t been paid off in greater Livonia, give us a call. You can reach Victory Honda of Plymouth at (734) 244-8177. We’ll walk you through every step of the process and ensure you get an objective offer on the value of your trade-in. If you’re considering similar but alternative paths like refinancing your auto loan, take a moment to explore our refinancing program as well!

 

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