Get Directions

4333 Sunset Boulevard, Lexington, SC, 29072

Can You Trade In a Financed Car?

Signing Finance Documents for Car

Can you trade in a financed car in Columbia? Yes. But, there are a few things to keep in mind when trading in a financed car. Most notably, you’ll still need to pay off the balance. Learn how trading in a financed car works, and explore your options with the finance team at Honda of Columbia!

How Does Trading in a Financed Car Work?

When you trade in a financed car for lease or loan in Irmo, you’ll need to do a little research ahead of time for the best results.

  • Find the remaining balance on your current loan. You can contact the lender or look at your last monthly statement.
  • Find the current value of your vehicle. You can use a Value Your Tool calculator from Honda of Columbia or use a service like Kelley Blue Book. These tools will offer a rough estimate based on different factors, but the real assessment must be performed in person.
  • If your current loan balance is less than the trade-in offer on your vehicle, you’ll have money leftover to apply to your new vehicle. So if you owe $5,000, but the dealership offers $6,000 on your car, you can pay your loan off and apply $1,000 to your new car.
  • If your current loan balance is more than the trade-in offer on your vehicle, you’ll still owe money on your old car – which is called “negative equity”. You have two choices: paying the remaining balance or rolling over the loan.

What is “Rolling Over” a Loan?

“Rolling over” the loan means you let the dealership pay off your remaining loan balance. Does this mean you’re off the hook on the old balance? No. The amount simply gets added to your new car loan balance. This means you’ll pay off the old loan and the new loan at the same time.

Finance Your Next Car with Honda of Columbia

Now you know the basics of how trading in a financed car works, but if you still have questions, Honda of Columbia is here to help. Contact us to see how trading in a financed car can benefit you, and stop by Lexington for more car buying tips. We’re only a short trip from West Columbia, so don’t hesitate to reach out!

More from Honda of Columbia

  • How Many Miles Per Gallon Does the 2023 Honda Ridgeline Get?

      If you’re looking for an adventurous new ride in the Columbia area, look no further than the Honda Ridgeline! This mid-size pickup has been refreshed for the 2023 model year with robust performance specs, tough capabilities, and next-generation technology inside and out. Whether you’re looking to make the daily commute, take the family on…

  • 2022 Honda Pilot MPG

      If you’re in the Irmo market for a fuel-efficient SUV that provides stellar performance yet still great on gas, the new 2022 Honda Pilot MPG is here to impress. But, how many miles per gallon does the 2022 Honda Pilot get? Find out at Honda of Columbia in Lexington! Read on to learn more…

  • The All-New 2024 Honda Prologue EV

      Honda has developed quite a reputation by delivering fuel-efficient cars and family-friendly SUVs to Columbia for years. However, the brand plans on pushing the envelope even further with the highly anticipated 2024 Honda Prologue EV! This brand-new all-electric Honda SUV offers impressive fuel economy ratings and powerful performance specs for your Irmo commute. Much…

Search
Contact
Glovebox
AudioEye
Search
Contact Us
Glovebox
AudioEye
Honda of Columbia 34.020301, -81.155003.