Can You Trade In a Financed Car?

happy couple with car dealer in auto show or salon

Yes, you can! However, it’s important to note that trading in a financed car doesn’t make the loan on your vehicle disappear. You’ll still be expected to pay off the balance. To find out more about how trading in a financed car works, read our handy guide below, then speak with one of the associates at the Mercedes-Benz finance center! We can discuss how to trade in a financed car for a lease or a new car purchase at our Louisville dealership!

How Does Trading In a Financed Car Work?

  1. To start, you’ll need to check the remaining balance on your loan. This is usually found at the bottom of your monthly statement.
  2. Use our Kelley Blue Book value your trade tool to get an instant cash offer on your vehicle.
  3. If your trade-in offer from the dealership is more than the amount owed on your vehicle, then you can use the leftover money towards purchasing a new car from the dealer. For example, if you have $9,000 left on your auto loan, and the dealer offers you $10,000 to trade-in your vehicle, then the loan can be paid off and you’ll have $1,000 to contribute towards your next car.
  4. If the trade-in offer is less than what you owe on your loan, then you’ll still owe money on your car. This is known as negative equity. In this situation, you can either pay off the remainder in full before buying your next car, or you could potentially roll the balance over into a new auto loan on a new vehicle from the dealer.

Explore Your Financing Options at Mercedes-Benz of Louisville

When you’re ready to trade in a financed car for a lease or a new vehicle purchase, you can rely on Mercedes-Benz of Louisville. Our financing team in Louisville will help you explore all your options and take into account your credit score to ensure you’re making a wise financial decision. We can also show you new vehicle specials or certified pre-owned specials to find great pricing on a new or used car for sale near Elizabethtown and Shelbyville.

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Mercedes-Benz of Louisville 38.2511684, -85.6415362.