Can You Trade In a Financed Car?

Woman handing over car keys


Ever wondered, “Can you trade in a financed car?” Well, you absolutely can! However, keep in mind that your vehicle’s loan doesn’t go away because you’ve traded it in; you still have to pay off the remaining balance. Explore your options for trading in a financed car with BMW of Murrieta’s finance center.

How Does Trading In a Financed Car Work?

  1. Check your monthly statement to see how much you still owe on your vehicle.
  2. Use our Value Your Trade tool, or one from a website such as Kelley Blue Book, to retrieve the estimated value of your car. Note that this is just an estimate, and only once your car has been physically inspected will the dealership be able to determine exactly how much the car is worth. 
  3. If the remaining balance on your auto loan is less than the dealership’s trade-in offer, then you can apply that leftover money to the purchase of a new car. For example, if you still owe $9,000 on your car in Corona, and the dealer offers you $10,000 to buy the car, the loan can be paid off and you’ll have $1000 to contribute towards your next car. 
  4. If your auto loan’s remaining balance is more than the trade-in offer, this will result in you still owing money on your car–otherwise known as negative equity. You can either pay off the remainder of your loan in full before purchasing your next car, or the dealership may give you the option to roll over the balance into your next auto loan with the dealer. 

What Does it Mean to “Roll Over” a Loan?

When Riverside shoppers have their auto loan rolled over, the dealership pays off their old loan no matter how much they owe. While this may sound like a great opportunity, rolling over a loan doesn’t mean that you aren’t obligated to pay that remaining balance. Rather the price gets added to the new loan on the next car you purchase, meaning you’ll have to pay the dealership back, simultaneously, for both the new and old loan. 

Shop With BMW of Murrieta for Your Next Vehicle

Whether you’re looking to trade in a financed car for a lease, or you have more questions about the trade-in process, you can turn to the automotive experts at BMW of Murrieta for guidance. Contact us today, or stop by our dealership located near Ontario. Also, be sure to browse our new vehicle specials online to get a great deal on your next BMW. 

More from BMW of Murrieta

  • 2022 BMW X7 Price and Configurations Guide

      There’s a new BMW X7 for every lifestyle and every budget at BMW of Murrieta! The BMW X7 price starts at $74,900 MSRP for the xDrive40i configuration, with room to upgrade into higher-level BMW X7 configurations if you crave an elevated experience on the Corona roads. Get a complete look at the pricing and features of…

  • 2022 BMW iX Interior Guide

      The all-new BMW iX is said to be “arguably the best in the class” (U.S. News). That’s why we’re excited to highlight the luxurious interiors with sustainably sourced materials, spacious cargo and ample passenger room for your daily Corona drives, and the latest technology of this BMW Sport Activity Vehicle®. Now that the iX…

  • Your Guide to the 2022 BMW X3 Interior

      With a maximum towing capacity of 4,400 pounds, the 2022 BMW X3 is a great companion for weekend adventures near Corona. But when it comes to passenger comfort and cargo space for journeys near and far, how does the 2022 BMW X3 interior hold up? With up to 62.7 cubic feet of cargo storage…