How Does Trading in a Financed Car Work?

Some of our customers in Kansas City may be wondering, “Can you trade in a financed car?” Though the answer is yes you can, there are still a few provisions that must be met before you buy a new vehicle. It’s important to know that the loan on your current vehicle isn’t forgiven when your car, truck or SUV is traded. You’re obligated to pay off the remaining balance. So, if you’re considering trading in a vehicle that still has a balance, you will be required to follow a different process than someone whose vehicle is paid for. If you need any assistance, our knowledgeable finance department can help with your needs.

Trading in a Financed Car

How does trading in a financed car work? To start, if the amount owed on your current car loan is less than your car is worth, then the dealership will purchase your vehicle and pay off the balance of your existing loan. Any difference between the amount the dealership offers and the remainder of your loan will be deducted from the purchase price of your new vehicle.

For example, if your current car loan has a remaining balance of $9,000 and the dealership offers you $10,000 for your car, they will purchase your vehicle and deduct the remaining $1,000 from the cost of your new car.

The Process of “Rolling Over” a Loan

Some dealerships may choose to pay off the balance of your loan even if your loan is upside down, meaning the amount owed is more than the car’s worth. The process is called “rolling over” a loan. In this case, the remaining balance of the loan (after they assess the value of your trade) will be added to the cost of your new vehicle. Keep in mind rolling over a loan will increase the cost of your monthly payments because you’ll be required to pay the dealership for acquiring the balance of your previous loan.

Trade-in Your Old Vehicle in Overland Park

We hope these car buying tips were helpful on your new vehicle journey. To learn more about your options for trading in a financed car, contact us so we can get you behind the wheel of a new Chevy!

Learn More With Hendrick Chevrolet Shawnee Mission

  • 2022 Chevrolet Colorado Towing Capacity

      If you are looking for a wonderful mid-size pickup truck that you can enjoy on Kansas City roads, then the logical conclusion is that you should invest in the 2022 Chevrolet Colorado. The Colorado towing capacity tops out at around 7,700 pounds, which is plenty when it comes to Shawnee Mission drives. Find out more with…

  • 2022 Chevy Blazer Towing Capacity

    How much can a Chevy Blazer tow? The new Chevy Blazer brings pulse-raising performance and sporty good looks to the streets of Kansas City, but the Chevy Blazer towing capacity you can work with depends on how you configure your new SUV. The maximum available Blazer towing capacity is 4,500 pounds. What does it take to…

  • 2022 Chevy Silverado 2500HD Towing Capacity

    The 2022 Chevy Silverado 2500HD brings heavy-duty capabilities to your Kansas City and Shawnee Mission job sites. If you’ve reviewed the light-duty Chevy Silverado towing capacity for the 1500 model and determined that it’s not quite enough for your needs, then an upgrade to the Silverado 2500HD is likely the right choice. At maximum, the 2022 Chevy…

Hendrick Vehicle Disclaimer:

$699.00 Dealer Administrative Charge not included in advertised price.

All prices exclude all taxes, tag, title, registration fees and government fees. Out of state buyers are responsible for all taxes and government fees and title/registration fees in the state where the vehicle will be registered. All prices include all manufacturer to dealer incentives, which the dealer retains unless otherwise specifically provided. Dealer not responsible for errors and omissions; all offers subject to change without notice; please confirm listings with dealer.


All vehicles may not be physically located at this dealership but may be available for delivery through this location. Transportation charges may apply. Please contact the dealership for more specific information. All vehicles are subject to prior sale.




Additional Disclaimers:

*Finance charges accrue from date of financing. Deferred monthly payments for 90 days. 1.9% APR for 36 months. Monthly payment is $28.60 for every $1,000 you finance. Example down payment: 18.8%. Must finance with GM Financial. Down payment required at signing, if applicable. Not available in PA. Some customers may not qualify. Not available with lease and some other offers. Take new retail delivery by 3/4/24.

*2.9% APR for 72 months. Monthly payment is $15.15 for every $1,000 you finance. Example down payment: 19.2%. Must finance with GM Financial. Some customers may not qualify. Not available with lease and some other offers. Take new retail delivery by 3/4/24. **Must trade in a 2010 model year or newer vehicle. Not available with special financing, lease and some other offers. Take new retail delivery by 3/4/24.

Connect With Us

Hendrick Chevrolet Shawnee Mission 39.0157, -94.6792.