Finance Documents

How Does Trading In a Financed Car Work?

For Santa Monica drivers that own a vehicle that’s currently financed with a loan from a financial institution, it is possible to trade-in that car and lease another new vehicle. However, there are some financial conditions that need to be satisfied first. You will need to:

  • Pay off Remaining Balance Owed on Current Loan – A trade-in loan that’s been paid off obeys different rules than a vehicle that is still carrying an owed balance.
  • Determine Negative Equity or Positive Equity: Is the vehicle that’s being traded in worth more than the amount owed (positive equity) on the loan or is it worth less (negative equity). Again, the process is different for each scenario.

Trading in a Financed Car With Positive Equity

Positive equity in a financed vehicle means its resale value is a higher number than the current outstanding amount on the loan. For Malibu drivers in situations like this, the difference is applied to the new leased vehicle as a “credit”. To find out if you have positive equity in your current vehicle, use our convenient online trade-in evaluator.

Trading in a Financed Car With Negative Equity

If your vehicle has negative equity, then it is worth less then the amount still owed on the loan, in which case the vehicle will be paid off with enough money to cover what is still owed. The difference between the two amounts is now owed to the new leasing dealer, which can be paid by taking out another loan, settling with cash or “rolling over” what is owed into the loan for the new leased car. Negative equity loans are sometimes referred to as “upside down” or “underwater” loans. 

Rolling Over Into a New Loan

“Rolling over a loan” happens when a vehicle with negative equity is sold and the difference between the vehicle’s value and what is owed on the loan is applied to a new lease. The new loan now is paying off what remained on your old loan in addition to the new loan in one monthly payment.

Get Vehicle Financing From Jaguar Santa Monica

When looking to upgrade your Pacific Palisades and Brentwood area driving experience, browse through our wide selection of new, pre-owned and used vehicles until you’ve found the ideal match. You can calculate your monthly payments online and if your question is, “can you trade in a financed car”, the professionals in our finance department are more than ready to help. Contact us today to get started!

More From Jaguar Santa Monica

  • 2020 Jaguar F-PACE Interior

    For Malibu and Pacific Palisades shoppers on the hunt for a five-passenger luxury crossover SUV, consider the 2020 Jaguar F-PACE. At Jaguar Santa Monica, you can take a closer look inside and learn about the Jaguar F-PACE interior capacity specs as well as interior features that will improve your drives. Learn More View Inventory Jaguar F-PACE Interior Capacity…

  • How Much is the Jaguar I-PACE?

    The all-electric Jaguar I-PACE SUV is now in its second model year, and since this award-winning vehicle debuted with such praise, Jaguar has only made a few changes for 2020–why mess with the best? Starting at $69,850 MSRP, the Jaguar I-PACE prices have only slightly increased, and there are now three available I-PACE trim levels,…

  • 2019 Jaguar I-PACE Reviews

    Are you shopping for a new electric car or SUV in Malibu? This market is growing every day, and the 2019 Jaguar I-PACE is a stand-out contender. With two electric motors and a 90kw lithium-ion battery, this all-electric SUV has regenerative braking, all-wheel drive, and near-perfect 50/50 balance for incredible handling. Explore Jaguar I-PACE reviews from automotive…

Saved Vehicles ×


You don't have any saved vehicles!

Look for this link on your favorites:


Once you've saved some vehicles, you can view them here at any time.

Contact Us ×

(424) 291-4842

Call Now

3020 Santa Monica Blvd • Santa Monica, CA 90404

Get Directions

Today's Hours:

Sales: Closed

Service: Closed

Jaguar Santa Monica

3020 Santa Monica Blvd Santa Monica, CA



Phone: (424) 291-4842

3020 Santa Monica Blvd Santa Monica, CA


Phone: (424) 291-4594

3020 Santa Monica Blvd Santa Monica, CA
34.0366906 -118.4693878
[schema type="organization" orgtype="LocalBusiness" url="" name="Jaguar Santa Monica" description="" street="3020 Santa Monica Blvd" city="Santa Monica" state="CA" postalcode="90404" country="United States" email="" phone="" logo=""]
Jaguar Santa Monica
Jaguar Santa Monica
3020 Santa Monica Blvd
Santa Monica, CA, 90404 United States
Jaguar Santa Monica 34.0366906, -118.4693878.