Can You Trade In a Financed Car?

Absolutely! You can trade in a financed car — but keep in mind that the loan on your vehicle doesn’t go away because you’ve traded it in; you have to pay off the balance. Learn more about your options for trading in a car that still has a loan balance with your local authorized Buick, GMC finance center, and contact us if you have any questions about car loans and interest rates, selling a car, leasing a car, credit scores, and more in Minneapolis.

How Does Trading In a Financed Car Work?

1. Determine the remaining balance on your loan. It is typically listed on your monthly statement.
2. Use our Value Your Trade tool or one from a service like Kelley Blue Book to get an estimate on the value of your current vehicle. Note that this is simply an estimate, and it’s only once the vehicle has been physically inspected that the dealership will establish what the car is worth.
3. If the remaining amount of your auto loan is less than the trade-in offer from the dealership, then you’ll have money left over that will go towards purchasing a new car from the dealer.
   1. For example, if you still owe $7,000 on your car in St. Paul, and the dealer offers you $8,000 to buy the car, the loan can be paid off and you’ll have $1000 to contribute towards your next car.
4. If the remaining balance of your auto loan is more than the trade-in offer, then you’ll still owe money on your car–this is called negative equity. You can pay off the remainder in full before buying your next car, or you may have the option to roll over the balance into your next auto loan with the dealer.

What Does “Rolling Over” a Loan Mean?

Rolling over a loan is when a dealership says they will pay off your old loan no matter how much you owe. However, this is too good to be true, as the price gets added to your new loan on the next car you buy, meaning you pay the dealership back for the old loan at the same time that you pay off the loan on your new vehicle.

Rely on White Bear Lake Superstore for Your Next Vehicle

When you’re ready to trade in a financed car for lease or get behind the wheel of a new Buick, GMC, be sure to check out our new vehicle specials in White Bear Lake. You can also rely on more car buying tips to prepare for your next purchase in Twin Cities, then apply for financing online to get the process started!