Can You Trade In a Financed Truck?

Can You Trade In a Financed Truck?

Many Logan drivers may be curious to know if you can trade in a financed truck for lease or just trade in a financed truck in general. You actually can do this, but how does trading in a financed truck work? You still have to pay off the loan balance even if you trade in a financed truck, but the finance department at Truck Ranch has put together a handy guide to show you how the process works and how you can get started.

Trading in a Financed Truck

How does trading in a financed truck work? Follow these steps to find out how trading in a financed truck could be beneficial:

1. The first step is finding out the remaining loan balance. You can almost always find this in your monthly statements.
2. The next thing you’ll want to do is determine the trade-in value of your vehicle. You can easily do so with our trade-in tool at Truck Ranch. However, it’s important to note that this number is just an estimate, and the more precise cost will be determined by the dealership after a physical inspection.
3. If the loan amount ends up being less than the trade-in offer from the dealership, then that means you’ll have extra money to put towards your next truck. For example, if you owe $9,000 on your car and the dealership offers you $10,000, then that means you have $1,000 to put towards your next truck purchase.
4. If your loan balance is more than what the dealer offers for a trade-in, then this is called negative equity, and you’ll still have to pay off the remaining balance. You can either pay off the remainder before buying a truck, or you could do something called “rolling over” your loan.

You know that you know you can trade in a financed truck, you should know about rolling over a loan as this could be something that may help you speed up the trade-in process.

Rolling Over a Loan

As mentioned, when your loan balance amount is higher than the trade-in offer from the dealership, you’ll have two options: paying off the amount before getting a truck or rolling over the loan amount. When you roll over a loan, the dealership adds the remaining amount to the price of the used truck. This just means you’ll have to pay off the old loan plus the new loan for the truck you’re buying. For more truck-buying tips and tricks, visit Truck Ranch in Logan or online.

Find Your Next Vehicle at Truck Ranch

Not only can you trade in a financed truck, but you can have money left over after paying off your loan from the dealership offer or roll over your loan amount and pay it on top of the new loan amount. The choice you make will depend on your circumstances and needs, which will be different for every American Fork driver. For more advice on insuring a used truck, what to know before buying a truck, getting financing on used trucks, or to calculate your payment, contact us to answer any of your car-buying questions or learn more about our used GMC Sierra 1500 inventory online.