Can You Trade In a Financed Car?

Are you asking, “Can you trade in a financed car?” While it’s indeed possible, it’s important to note that the existing loan on your vehicle won’t disappear automatically. You’ll need to settle the remaining balance. Explore your options for trading in a car with an outstanding loan by reaching out to your local authorized Subaru finance center. If you have any questions related to car loans, interest rates, selling a car, leasing, credit scores, and more in Pittsburgh, feel free to contact us.

How Does Trading In a Financed Car Work?

How does trading in a financed car work? Are you wondering about the mechanics behind trading in a financed car? Follow these steps:

1. Determine the remaining balance on your loan, which is typically stated in your monthly statement.
2. Utilize our convenient Value Your Trade tool or try a reputable service like Kelley Blue Book to obtain an estimated value for your current vehicle. Keep in mind that this estimate serves as a preliminary figure, and the dealership will establish the actual worth once they physically inspect the car.
3. If the remaining loan amount is lower than the trade-in offer from the dealership, you’ll have extra funds to put toward the purchase of a new car. For instance, if you still owe $6,000 on your Bethel Park vehicle and the dealer offers you $7,000, the loan can be fully paid off, leaving you with $1,000 to contribute towards your next vehicle.
4. In case the remaining loan balance exceeds the trade-in offer, you’ll have negative equity. You can choose to pay off the remaining amount before purchasing your next car, or the dealer might provide the option to roll over the balance into your next auto loan.

What Does “Rolling Over” A Loan Mean?

We’ve answered the question, “Can you trade in a financed car?”, but what does “rolling over” a loan really mean? It’s when a dealership agrees to pay off your old loan regardless of its amount. However, this offer comes at a cost. The dealership adds the outstanding balance to your new loan for the next vehicle, resulting in simultaneous repayment of the old loan and the loan on your new vehicle. This can be an effective way to get out of a bad loan or upgrade your vehicle without needing to pay off your old car loan all at once. 

Trust Subaru of South Hills for Your Next Vehicle

When the time comes to trade in a financed car for lease or to get behind the wheel of a new Subaru, explore our enticing new vehicle specials in McMurray. Additionally, rely on our expert car buying tips to prepare for your next purchase in Canonsburg. Ready to begin? Apply for financing online and kickstart the process!