Can You Trade in a Financed Car?

If you’re asking if you can trade in a financed car, the answer is an unequivocal yes. Trading in a financed car doesn’t mean that your loan goes away; it simply gets transferred to your next loan. Trading in a financed car for a lease is one of several options available for you, but no matter what you choose, Mercedes-Benz of Wilmington will be by your side.

The finance professionals at Mercedes-Benz of Wilmington want to ensure you trade in your financed car without issue. New Castle drivers should take the next step by exploring our inventory of new and pre-owned vehicles as potential upgrade options.

How Does Trading in a Financed Car Work?

1. Determine the remaining balance on your loan. It is typically listed on your monthly statement.
2. Use our Value Your Trade tool or one from a service like Kelley Blue Book to get an estimate on the value of your current vehicle. Note that this is simply an estimate, and it’s only once the vehicle has been physically inspected that the dealership will establish what the car is worth. 
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 toward purchasing a new car from the dealer. 
1. For example, if you still owe $7,000 on your car in West Chester, PA, and the dealer offers you $8,000 to buy the car, the loan can be paid off and you’ll have $1,000 to contribute toward your next car. 
4. If the remaining balance of your auto loan is more than the trade-in offer, then you’ll still owe money on your car–this is called negative equity. You can pay off the remainder in full before buying your next car, or you may have the option to roll over the balance into your next auto loan with the dealer.

What Does “Rolling Over” a Loan Mean?

Rolling over a loan is when a dealership says they will pay off your old loan no matter how much you owe. However, this is too good to be true, as the price gets added to your new loan on the next car you buy, meaning you pay the dealership back for the old loan at the same time that you pay off the loan on your new vehicle.

Mercedes-Benz of Wilmington Wants Your Trade-in Vehicle in Wilmington

You don’t have to worry about getting a good trade-in value when you buy with Mercedes-Benz of Wilmington. We’ve shown you how trading in a financed car works, which means you’re knowledgeable enough to shop for your next vehicle. Newark drivers looking to move up to an AMG® performance model or a Mercedes-Benz electric vehicle can rest assured that Mercedes-Benz of Wilmington has their back.