Can You Trade in a Financed Car?

Woman Signing Paperwork

 

You can’t put it off any longer. It’s time for a new car. But you haven’t completely paid off the car you have, yet. Can you trade in a financed car? How does trading in a financed car work? Can you trade in a financed car for a lease? You have questions. The experts in our finance center have the answers. We’ve helped many Eugene customers just like you with the intricacies of trading in a financed car. So, let’s answer your questions.

How Does Trading in a Financed Car Work?

Is your car worth more than what you owe on it? Then trading it in is easy. Here’s how it works: Suppose you owe $2,000 on your old car, but it is worth $3,000. The new lender will pay off your old loan and apply the remaining $1,000 towards your down payment for your new car. How does trading in a financed car work if you owe more than what it’s worth?

Can You Trade in a Financed Car When You Owe More Than It’s Worth?

Can you trade in a financed car if the amount left on your loan is more than what the car is actually worth? You can, but it may not be the best financial move. So, how does trading in a financed car work if you owe more than what it’s trade-in value? Suppose you owe $3,000 on your old car, but it’s only worth $2,000. Either you pay that $1,000 difference, or the dealer takes over your old loan and adds that $1,000 to the loan for your new car.

Can You Trade in a Financed Car for a Lease?

Many of our Springfield customers are surprised to learn that you can trade in a financed car for a lease. If you owe less than what your trade-in is worth, the positive equity is applied to the down payment on the lease. But what if you owe more than the trade-in value on your car? Much the same way as if you were buying the new car. You can either pay the difference upfront or the dealer will add your negative equity to the amount of the lease, resulting in higher monthly payments.

Ask Mercedes-Benz of Eugene About Your Financing Options

Our finance department endeavors to make buying and leasing a new car as easy as possible. You can even apply for financing online. Our dealership is just a short drive away from both Roseburg and Corvallis. So, drop by or contact us today! We can also tell you what you should and shouldn’t fix before trading in your car.

 

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