Can You Trade in a Financed Car in Toms River?

We may be surrounded by history in Toms River, but we are definitely not stuck in the past. That’s reflected in our choice of cars. Many of us here love to have the latest and most advanced models, even if that means moving on to a new car before we’ve completely paid off our current one. Can you trade in a financed car? Yes, most definitely. How does trading in a financed car work? Check out the handy guide below, where we explain the process in detail, including how to trade in a financed car for a lease. 

How Does Trading in a Financed Car Work?

Look, we get it. You have places to go, whether it’s to your job in Brick or to take the family out to Ortley Beach during the local summer, and you want to do it in a brand-new reliable car. So, how does trading in a financed car work, exactly? Well, suppose you still owe $6,000 on your old car, but it is worth $7,000. The dealer will pay off your loan and apply the $1,000 of equity you have in your old car toward paying for your new car. 

How Does Trading in a Financed Car Work if You Owe More Than It’s Worth?

How does trading in a financed car work if you owe more than it’s worth? You can do one of two things: pay off the loan before you buy the new car or get the new lender to agree to pay off your loan and roll the negative equity on to your new loan. So, for example, you owe $7,000 on your old car, but it’s only worth $6,000. You’ll either pay the $1,000 difference to the dealer, or the dealer will add $1,000 to your new loan. 

Can You Trade in a Financed Car for a Lease?

Can you trade in a financed car for a lease? Yes, the finance center at Honda of Toms River has helped many of our Manahawkin customers to do just that. Normally, the dealer takes over your loan and applies your positive equity to the down payment on the lease. If you owe more than what the car is worth, that negative equity can be added to your lease, increasing your payments. 

Why You Should Trade in Your Car Now

You know all the backroads to avoid traffic on 37. You never get lost, whether you’re on the east or west side of Toms River. You know how to drive the Parkway and come out alive. You can’t let all that knowledge go to waste on an old car. Besides, trade in values are at an all-time high now, so you should take advantage of them.

Bring In Your Trade to Honda of Toms River

We want your car, and we strive to give our customers the most competitive offers we can on their trade-ins. That’s why folks come from Berkeley and up and down the Jersey Shore to shop with us. Why not value your trade with our online tool? Let us get you behind the wheel of your new car today.