If you’ve been eyeing that new MINI Convertible or MINI Hardtop for San Francisco, you might be wondering, “Can you trade in a financed car?” The answer is yes, but there are some limitations that you should keep in mind. For example, your current loan won’t be instantly forgiven when you trade your vehicle in. You’ll still be responsible for paying the current balance – even when the car is long gone. So if you still have outstanding payments, the process can be a little tricky. However, if you need personalized advice, East Bay MINI is here to help. Let’s walk through the basics, below.
How Does Trading In a Financed Car Work?
Let’s say that the amount you owe on your old car is less than the value of the car itself. The dealership will help out by giving you enough to pay off the rest of the loan when they assume ownership of your trade-in. If you owe $9,000 on your car and the dealership buys the car for $10,000, the loan is paid and the car is transferred in one step. However, the difference of $1,000 will be taken from the price of your new car.
Trading In a Financed Car with a “Rolling Loan”
A “rolling loan” is when the dealership pays the remainder of your old loan. This amount, no matter how big or small, will be added to the cost of your new loan. So while you will be relieved of your old loan, you’ll still be responsible for the same amount in your new loan. This allows you to move forward in the auto financing process toward securing a car you really want, rather than sticking with a car that doesn’t suit your wants and needs!
Find Your Next New MINI at East Bay MINI Today!
Whether you want to trade in a financed car for lease or loan, East Bay MINI is here to help. Located near neighboring Oakland and Livermore, you’ll find our finance experts in Pleasanton. We’re happy to answer any all your car buying questions, including what is a lease buyout, so feel free to contact us or stop by the dealership for a chat. You can also look at our car buying tips to help you through the process or view our new vehicle specials to save a little extra money on your next MINI!
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**With approved credit. Terms may vary. Monthly payments are only estimates derived from the vehicle price with a 72 month term, 5.9% interest and 20% downpayment.