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

  • What Are the 2022 Honda Civic Fuel Economy Ratings?

      Looking for a fuel-efficient Honda sedan? Then the new 2022 Honda Civic MPG ratings are sure to save you money on gas during your West Columbia commute! The entry-level Honda Civic Sedan LX with an M-CVT boasts an impressive fuel economy rating of 31 MPG City/40 MPG Highway*. The Honda-exclusive Eco Assist System also helps…

  • 2022 Honda CR-V Interior

      Looking for a cutting-edge Honda SUV that can dependably get you and your family around Columbia? Then look no further than the brand new 2022 Honda CR-V. The latest Honda CR-V interior offers plentiful space, high-tech features, and plenty of seats for all your passengers. Continue reading to find out more about the 2022…

  • What Are the New 2022 Honda Accord Colors?

      The 2022 Honda Accord is a popular option for many Columbia drivers. It features exterior styling that’s easy on the eyes and will likely turn heads almost everywhere you go. But, climb inside of the new Honda Accord, and you’ll find a modern cabin that’s packed full of features to impress you and your…

Contact Us
Honda of Columbia 34.020301, -81.155003.