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If you’re browsing our new vehicle inventory but you already have a financing plan on your current vehicle, you may be wondering, “Can you trade in a car you’re financing?” The answer is yes! You can trade in a financed car, but keep in mind that the loan on your vehicle doesn’t go away because you’ve traded it in; you have to pay off the balance. Learn more about how to trade in a financed car with Hendrick Kia of Cary below, or contact our finance team if you have any specific questions about your financing plan.
Can you trade in a financed car for a lease? Yes. When trading in a financed car, your next acquisition can be obtained with whatever payment plan you desire, whether financing or leasing.
With that established, it’s time to move on: How do you trade in a financed car? There are a few steps you need to follow to trade in a financed vehicle. Read through them carefully below so you’re familiar with the process before you visit your Apex-area dealership:
Rolling over a loan occurs when a dealership says they will pay off your old loan no matter how much you owe. If this sounds too good to be true, that’s because it is. The price gets added to your new loan on the next car you buy, meaning you pay the dealership back for the old loan at the same time that you pay off the loan on your new vehicle. If carried out thoughtfully, this can be a manageable solution if you need a new car as soon as possible. It’s smart to consider cheaper used vehicles to help avoid going upside down on the new loan immediately.
So, it’s been well established that the answer regarding “Can you trade in a financed car?” is yes. But, how soon can you trade in a financed car? Do you need to wait a certain number of months before you can move forward? You’re allowed to trade in a financed car any time you want.
However, it’s usually not recommended to trade in a new vehicle you’re financing before the one-year milestone. This is because new vehicles may depreciate as much as 20% in the first year. Usually, depreciation slows down to about 10% per year after that. If you make a small down payment and your vehicle depreciates rapidly in the first year of ownership, there’s a greater chance of dealing with negative equity if you try to trade it in early.
Can you trade in a financed car at Hendrick Kia of Cary? Of course! No matter what type of situation you’re dealing with, our finance associates will work hard to help you arrive at a favorable solution. Catch up on more car buying tips to prepare for your next purchase in Raleigh, like the benefits of new vs. used vehicles.
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