Can You Trade In a Financed Car?

Man Writing in Book

Can you trade in a financed car? The short answer is that you can — but the process differs depending on how much you still owe on the vehicle. If the amount you owe is less than the trade-in value, then you’ll simply be transferring ownership to the car dealer. If you owe more on the loan than what the dealer is offering in trade-in value, then things get a bit more complicated.  Luckily, we’ve written up a handy guide to help you through the process! Read on for our step-by-step guide to how trading in a financed car works, and then make sure to check out our blog for more great tips on your next vehicle.



What It Means to “Roll Over” a Loan

First, let’s dispel a common misconception: your loan balance doesn’t disappear when the dealership “rolls it over” to the new loan. If your remaining loan amount is more than your current vehicle’s trade-in value, the dealership can combine it with your old loan. This means that you’ll pay off your old lease in the process of paying the new one — what we call “rolling over” your loan. However, if the amount remaining on your loan is less than your current vehicle’s trade-in value, it’s a lot simpler. The dealership will pay you the remaining amount, which transfers ownership of the vehicle from you to them.

When It’s a Good Idea to Trade-In Your Financed Vehicle

It’s certainly possible to trade-in a financed car, but when is it a good idea to do so? There are some circumstances where it’s your best bet to go for the trade-in, no matter how much you still owe on your current vehicle. You might think you’ll pay the same amount either way, but consider how much it costs you in maintenance and repair to keep an older car running, versus a brand new one. With the old loan folded into the new one, you’ll save money while enjoying your new car on the long and winding road from Escondido to Carlsbad.

Ask us About Financing Help at Mazda of Escondido!

If you’re ready to trade in a financed car for lease or get behind the wheel of a new Mazda and cruise the Vista roads, stop by %%di_name% or contact us about your financing options. Check out our 2019 Mazda lease specials and new vehicle specials, and then drop by to take one for a test drive today!

More from Mazda of Escondido

  • 2019 Mazda CX-5 Safety Rating

    Drivers near Vista and Carlsbad have so many reasons to choose the 2019 Mazda CX-5, and the most recent Mazda CX-5 safety rating is just icing on the cake! Whether you look to the National Highway Traffic Safety Administration or the Insurance Institute for Highway Safety, you’ll find that this Mazda SUV leaves nothing to…

  • What is the 2019 Mazda CX-3 Gas Mileage?

    As with most Mazda vehicles, the 2019 Mazda CX-3 is able to give drivers the best of both worlds: power and fuel efficiency. So what is the Mazda CX-3 gas mileage? The Mazda CX-3 is offered in several different trim levels, and in this guide from Mazda of Escondido, you can find out which fuel-efficient trim is…

  • What Are the 2019 Mazda6 Configurations?

    The new 2019 Mazda6 configurations are packed with an eye-popping amount of features that will make San Marcos-area drives a breeze. With a starting MSRP of $23,800*, you can enjoy features like the MAZDA CONNECT™ infotainment system across all five the trim levels. Below, the experts at Mazda of Escondido broke down the nuances between the different Mazda6…

Connect With Us

Saved
Saved Vehicles ×

SAVED VEHICLES

You don't have any saved vehicles!

Look for this link on your favorites:

Save

Once you've saved some vehicles, you can view them here at any time.

Contact
Contact Us ×

Sales

(855) 536-6443

Call Now

Service

(855) 536-6444

Call Now

Parts

(855) 536-6445

Call Now

1560 Auto Park Way • Escondido, CA 92029

Get Directions

Today's Hours:

Open Today! Sales: 8:30am-8pm

Open Today! Service: 7am-6pm

Open Today! Parts: 7am-6pm

Mazda of Escondido

1560 Auto Park Way Escondido, CA

Phone: (855) 536-6443

http://maps.google.com/?q=1560%20Auto%20Park%20Way%2C%20Escondido%20%2C%20CA%2092029

Parts

Phone: (855) 536-6445

1560 Auto Park Way Escondido, CA

Sales

Phone: (855) 536-6443

1560 Auto Park Way Escondido, CA

Service

Phone: (855) 536-6444

1560 Auto Park Way Escondido, CA
33.1174397 -117.1069548
[schema type="organization" orgtype="LocalBusiness" url="www.mazdaofescondido.com" name="Mazda of Escondido" description="" street="1560 Auto Park Way" city="Escondido" state="CA" postalcode="92029" country="United States" email="placeholder@donotreply.com" phone="(855) 536-6443" logo="https://di-uploads-pod13.dealerinspire.com/mazdaofescondido/uploads/2017/11/MazdaofEscondidoOGImage.png"]
Mazda of Escondido
Mazda of Escondido
1560 Auto Park Way
Escondido, CA, 92029 United States
(855) 536-6443
https://di-uploads-pod13.dealerinspire.com/mazdaofescondido/uploads/2017/11/MazdaofEscondidoOGImage.png
Mazda of Escondido 33.1174397, -117.1069548.