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Can You Trade In a Financed Car?

2021 Mazda CX-5 grille


In short, yes! You can trade in a financed car. You’ll want to keep in mind though that the loan on your vehicle won’t go away simply because you’ve traded it in. The balance will still need to be paid. Interested in learning more about your options for trading in a financed car? Our finance team can be of assistance. Check out our online finance guide today, then contact our team with any questions.

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 leftover that will go towards purchasing a new car from the dealer. For example, if you still owe $7,000 on your car in Dallas, 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?

What is rolling over a loan? This is when a dealership says they will pay off your old loan no matter how much is still owed. However, the loan doesn’t just go away. The price of your old loan gets added to your new loan on the next car you buy no matter if you’re in %%targeT_city_1%% or Hurst. This means you’ll be paying back the old loan at the same time as paying off the new loan.

Rely on Hiley Mazda of Hurst - DFW for Your Next Vehicle

Schedule an appointment with our finance team today to learn more about how you can trade in a finance car. Before you do this, be sure to check out our online inventory to find the new model you want to drive home to Hurst. If you have any questions, contact our team.

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Hiley Mazda of Hurst - DFW 32.8199514, -97.2082537.