Some Traverse City drivers ask us at Serra Volvo Cars of Traverse City, "Can you trade in a financed car?" The answer is yes! Remember that trading in a financed car doesn't make your current car loan magically go away. You still have to pay off the balance. Learn more here about your options for trading in a financed car, and contact us if you have any questions about auto loans, interest rates, or trading in your car around Garfield Township.

Finance Department Contact Us

How to Trade In a Financed Car

So, how does trading in a financed car work? Read on and then reach out to us to get started.


  1. The first thing you need to do when trading in a financed car is to find out the remaining balance on your loan. You'll probably find it listed on your monthly statement.

  2. Get an estimate on your current car's market value. You can use our Value Your Trade tool or another online tool from a service like Kelley Blue Book or Cars.com to get an estimate of the value of your current vehicle. Keep in mind that it's simply an estimate. The dealership will still need to physically inspect the car to determine its value. 

  3. If the remaining amount on your car loan is less than the trade-in offer from the auto dealership, then you'll have money left over to put towards buying a new car from that dealership. 

    1. For example, if you still owe $5,000 on your car, and the dealer offers you $7,000 to buy the vehicle, your loan can be paid off, and you'll have $2,000 to contribute towards the car you purchase. 

  4. If the remaining balance of your car loan is more than the trade-in value, it's called negative equity or "being upside down" in your car loan. You could pay off the remainder in full before buying your next vehicle or possibly roll over the balance into your next car loan with the dealer.

What Does "Rolling Over" A Loan Mean?

Rolling over a car loan is when a dealership agrees to pay off your old loan regardless of how much you owe on it. However, the price will be added to your new car loan, meaning you pay the dealership back for the old loan while simultaneously paying off the loan on your new Volvo.

Shop for Your Next Vehicle at Serra Volvo Cars of Traverse City

If you want to trade in a financed car for a lease or purchase, Serra Volvo Cars of Traverse City, near Interlochen is ready to help. Let's go for a test drive around town and talk about your options. Be sure to browse our new vehicle incentives and let us know if you have any questions about trading in a financed car. Apply for financing online and contact us today to upgrade your Kalkaska driving experience!