Can You Trade In A Financed Car?

Yes, you can trade in your financed car at a dealership, whether it’s at our Dallas location or somewhere far out beyond Waxahachie. The important thing to remember is that trading in the car does not automatically eliminate the loan; you are still responsible for paying off the remaining balance. To explore your options for trading in a car with an outstanding loan balance, we encourage you to reach out to our Legacy Toyota of Dallas finance center. Feel free to contact us at 945-207-3254 with any further questions.

How Do You Trade In A Financed Car In The Greater Arlington Area?

1. Determine the remaining balance on your loan. You can find your remaining loan balance on your monthly statement.
2. To begin, utilize our Value Your Trade tool or a similar service, such as Kelley Blue Book, to get an estimated value for your current vehicle. Keep in mind that this is only an estimate; the dealership will determine the vehicle’s final value after a physical inspection.
3. If the remaining amount of your auto loan is less than the trade-in offer from the dealership, then you’ll have money left over that will go towards purchasing a new car from the dealer.
   • For example, if you still owe $7,000 on your car and the dealer offers you $8,000 to buy it, you can pay off the loan, and you’ll have $1,000 to contribute toward your next car.
4. If the value of your trade-in is less than the amount you still owe on your auto loan, you are in a situation known as negative equity. You have two options for handling this remaining balance: you can pay off the full amount before purchasing your new vehicle, or, in some cases, the dealership may allow you to include the balance in your next auto loan.

What Does “Rolling Over” A Loan Mean?

The term “rolling over a loan” has a uniform meaning, regardless of whether you trade in your car at Legacy Toyota of Dallas or somewhere closer to the Duncanville area. When a dealership offers to “roll over” your loan, they are claiming they will pay off your existing loan regardless of the amount you still owe. However, this appealing offer comes with a catch: your new vehicle loan absorbs your old vehicle loan balance. You will repay the dealership the original debt while simultaneously paying off the financing on your new car.

Trade In Your Current Vehicle At Our Dallas Dealership

Ready to trade in your financed car for a lease or get into a new Toyota vehicle? Start by exploring our new vehicle specials at Legacy Toyota of Dallas, proudly serving South Dallas and the surrounding regions. If you live all the way out in Desoto or further and want to get a head start on your shopping experience, fill out our remote auto loan application before you stop by our Dallas dealership.