Can You Trade In a Financed Car in American Fork?

When it’s time to trade in your car for a used vehicle, some want to know what’s considered good mileage for a used car. You won’t just look at the mechanical and physical condition of the car, but also the mileage. Many people try to stay away from a used car with more than 100,000 miles, but if it’s been well taken care of, it could be a good purchase. The team at Ken Garff Chevrolet has some essential factors to consider when you’re shopping for a pre-owned vehicle around the Lehi area. We’re proud to be your go-to destination for all of your car-buying needs!

The short answer– Yes! The longer answer– Trading your financed car is possible just as long as you pay off the loan balance of your vehicle, even after you’ve traded it in. 

You can discover a myriad of options when it comes to trading in a car with a loan balance at the local authorized Chevrolet finance center. Contact us with questions about how to trade in your car, leasing your car, credit scores, loan/interest rates, and more in Lehi. 

How Do You Trade In a Financed Car?

1. Find the remaining loan balance. You can find this on your monthly statement.
2. Use a service such as the Value Your Trade tool or the Kelley Blue Book to find an estimate on your current vehicle. A reminder that this would only be an estimate, and a more accurate price will be determined after undergoing a physical inspection at a dealership.
3. If the auto loan balance on your vehicle is less than the trading price on your vehicle post-inspection, then the remaining balance can be used to purchase a new vehicle at the dealership. For instance, if your auto loan balance is $7,000 and the dealership offers $8,000 for your vehicle, you can pay off the loan with $1,000 leftover to purchase a new vehicle.
4. However, if your auto loan balance costs more than the price of the car post-inspection, you’ll end up at a price deficit– which is called negative equity. Your options would be to pay off the balance before purchasing your new vehicle, or have the new balance rolled over into a new loan with the dealership.

What does “Rolling Over” A Loan Mean & is it a Good Idea?

Rolling over a loan is when a dealership says they will pay off your old loan balance no matter how much you owe. A loan is “rolled over” when a dealer promises to waive your outstanding loan balance no matter the price. However, be cautious, because you still would be responsible for paying the dealership the old loan in conjunction with the loan of your new vehicle. 

Turn to Ken Garff Chevrolet for Your Next Vehicle

Now that you have all the information, you can responsibly trade in your financed car for a pristine new vehicle such as the Chevrolet. Be sure to look into our new vehicle specials in American Fork, and check out our articles on car buying tipsand our online finance application.Hope to see you for your next purchase in Eagle Mountain soon!