To be blunt, yes, but the process differs depending on how much you still owe on the vehicle. It can seem complicated, but an easy outline for Aurora drivers is below. Because the current loan on your vehicle isn’t abolished when you trade it in, you’ll have to pay off the remaining balance. The trade-in process is different for a vehicle with outstanding payments vs. a vehicle that has been fully paid off, and our Chicago-area finance department will walk you through those discrepancies.
Before you apply for financing on your new car, you may have some questions about trading in your vehicle. Trading in a financed car depends on the type of equity you have.
Think of it this way: if you owe $5,000 on your car, and the dealership offers $8,000 to buy it, the loan will be paid off when the dealership takes it over. The remaining $3,000 will then be removed from the price of the new vehicle you purchase.
When the dealership says they will pay the remainder of your old loan in the case of negative equity, this is referred to as “rolling over” a loan. This price will be tacked on to your new loan on your next vehicle. This means your new loan will account for both your new vehicle and for the dealership covering the remaining balance on your trade-in. Our team of financial experts can more fully explain how this works, even if you have less than ideal credit.
For Oswego drivers ready to move away from their financed vehicle, you’ll find all the help you need at Valley Honda. Whether you’re looking to trade-in for a new car to cruise around Naperville or need a reliable commuting vehicle, contact us for more advice regarding the financing process.
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