Can You Trade in a Financed Car?

Hands Doing Calculations with Calculator

In short: yes. However, there are important stipulations depending on the financial situation of your current vehicle. In the following guide, we’ll detail a few of the possible outcomes that could result from trading in a financed car to lease a new one. Should you need any additional financial guidance, contact our finance department who is always happy to help drivers get a car they love for a price they can be proud of. 


How Does Trading In a Financed Car Work?

Your current financial relationship with your financed vehicle can be categorized in one of two ways: you could have positive equity or negative equity. See how these situations change how trading in a financed car works in the area.

Positive Equity

If you have positive equity on your currently financed vehicle, that means your vehicle is worth more than the remaining amount you owe on your car loan. In this case, after you trade in your car, that money can be applied to the new vehicle you are looking to acquire. For example, if you still owe $5,000 on your current car loan, but the dealership values the vehicle at $8,000, you’ll be credited that $3,000 toward your new car. 

Negative Equity

Conversely, negative equity implies that you still owe more on your car loan than the vehicle is currently worth. This loan situation is often referred to as being “underwater” or “upside down.” If this is the case, trading in a financed car to lease a new one will mean your new lease payment will include what you still owe on the previous loan. This is known as “rolling over” a loan. Unfortunately, trading in your car does not mean that your outstanding payments vanish or are absorbed by the dealership or its new owner. 

Contact our Cornerstone Chevrolet Finance Team 

Getting a new car is very exciting, and just because you still owe payments on your current auto loan doesn’t mean you’re stuck in it forever. If you’ve found this guide helpful, feel free to apply for financing to see what you may qualify for. For more advice regarding trading in your vehicle, determining your credit score, or what new vehicle is right for you, stop by the dealership. 

More from Cornerstone Chevrolet

  • 2021 Chevy Malibu Trims

      Longing for a sleek, high-performance sedan to enhance your Rogers drives? The 2021 Chevrolet Malibu for sale at Cornerstone Chevrolet will reinvigorate your daily commute with its impressive fuel economy specs and luxe interior. For the 2021 model year, there are five Chevy Malibu trims available, so you’ll have the ability to personalize your driving…

  • 2021 Chevy Malibu MPG

      The 2021 Chevy Malibu has dazzled Rogers drivers with its well-appointed interior and high-tech amenities, but that’s not all that it has to offer. The 2021 Chevy Malibu MPG reaches up to 29 mpg in the city and 36 mpg on the highway, which can save you serious money on annual fueling costs. See…

  • 2021 Chevy Equinox Trim Levels

      Finding your next great compact crossover to power through the streets of Rogers is easy with the 2021 Chevy Equinox. Explore the Chevy Equinox trim levels and pricing options to see which package fits your lifestyle and budget. Learn more about the configuration options with Cornerstone Chevrolet and shop for your Chevy with Click Your…

Contact Us
Cornerstone Chevrolet 45.2954, -93.80195.