When can a dealer sell a customer's trade-in vehicle on a financed deal?

The correct answer is based on the principle that a dealer must wait for financing approval before selling a customer’s trade-in vehicle. In a financed deal, the ownership of the trade-in vehicle typically remains with the customer until the financing process is finalized. This ensures that the customer is legally still the owner and retains the rights associated with their vehicle until the funds for the new purchase are secured and the financing terms are fully established.

Once financing is approved, the dealer can proceed with the transaction involving the trade-in. This protects both the dealer and the customer in terms of financing obligations and ownership rights. The other options suggest scenarios where the dealer might preemptively sell the trade-in vehicle, which could violate the customer's ownership and legal status regarding the vehicle until financing is definitively arranged.