Can You Trade In a Financed Car?

You’ll find that trading in a financed car is a little different than trading in a vehicle that has been paid for, but the experts in the BMW of Warwick finance center can help you navigate the process. How does trading in a financed car work? This guide will walk you through the steps on how to trade in a financed car for a lease or purchase. If you have any questions along the way, please don’t hesitate to reach out to our team.

How Does Trading In a Financed Car Work?

Before we take a look at how to trade in a financed car, it is important to understand that you will still be on the hook for the remaining balance on your original car loan. However, there are a couple of different ways to handle paying off the outstanding loan on your trade-in. So, how does trading in a financed car work? The following steps will guide you through the process of how to trade in a financed car for a lease or purchase:

1. Find out exactly what the balance is on your auto loan by reviewing your monthly statement.
2. Get an estimate on how much your current car is worth. You can use our convenient online Value Your Trade tool to quickly get the fair market trade-in value of your car. Note that this will only be an estimate, the actual value will be determined after the vehicle has been inspected and appraised at our dealership near East Greenwich. 
3. If what you owe on your loan is less than the trade-in offer, then you can put that money towards your next purchase. For example, if you still owe $6,000 on your vehicle, and you are offered $7,000 for it, then you can pay off the loan and have $1,000 left over that can go towards your next vehicle.
4. If what you owe on your loan is more than the trade-in offer, you can either pay off that remaining balance yourself or roll the balance over into your next car loan. Rolling over your loan is when the payments on your existing loan are folded into your new loan payments. 

Trading in a Financed Car is Easy at BMW of Warwick

Whether you want to trade in a financed car for a lease or another car loan, you can count on the team at BMW of Warwick to help you get the best deal and payment plan possible. Make sure that you explore our current BMW lease and finance offers to take advantage of some of the best deals in the Providence and Cranston area. You can also apply for financing with us online to get pre-approved from the comfort of your home or office. Visit our dealership in Warwick to get the trade-in process started today!