Can You Trade in a Financed Car?

Tiny car with calculator

It’s well within the realm of possibility to trade in your financed car — but just remember that doing so won’t immediately or magically erase your loan obligations. You will, in other words, still have to pay off the balance of your auto payments. Learn more about your options, including a loan rollover, with the Mercedes-Benz of Portland finance experts. Be sure to also check out our other car buying tips for answers to additional questions. 


How Does Trading in a Financed Car Work?

  1. Figure out the outstanding balance on your car loan. It can usually be found on your monthly statement.
  2. Use our Value Your Trade tool or one from a service like Kelley Blue Book to get an estimate of the current book value of your car. Then, bring your vehicle into our service experts for a formal evaluation and offer.
  3. If the remaining amount of your auto loan is less than the trade-in offer from the dealership, then you’ll have money leftover that will go toward purchasing a new car from the dealer. 
  4. If the remaining balance of your auto loan is more than the trade-in offer, then you’ll still owe money on your car and will need to pay it off or have your loan rolled over.

What Does “Rolling Over” a Loan Mean?

When a dealership offers to pay off your old vehicle loan regardless of how much it will cost, that’s called rolling over a loan. Rolling over a loan essentially means that the dealer pays off the old loan but tacks on an equivalent amount to the new loan, thereby giving you the chance to pay it off, essentially.


Rely on Mercedes-Benz of Portland for Your Next Vehicle

Ready to save more on your next new Mercedes-Benz for sale in Portland? We’re here to help! Explore our current new vehicle specials for extra savings. Then, browse our new inventory or apply for financing online!

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