How to Trade In a Car That Is Not Paid Off

Are you wondering whether you can trade in a car that hasn’t been fully paid for? You can, and it’s a fairly common occurrence. Some people are simply ready for something new, while others may be struggling to keep up with their payments and need something more affordable. The steps for how to trade in a car that is not paid off depend on the situation. So, if you’re ready to move forward, join Spitzer Chevrolet of Amherst below to find out how to trade in a car you still owe on.

Positive vs. Negative Equity

Determining how to trade in a car that is not paid off depends on whether you have positive or negative equity.

• Positive equity: You owe less than your estimated car trade-in in Amherst
• Negative equity: You owe more than your estimated car trade-in in Amherst

You can value your trade online to estimate how much it’s worth. Then, compare it to your remaining loan balance. You have positive equity if your loan balance is lower than your trade-in estimate. You have negative equity if your loan balance exceeds your trade-in estimate.

Trading in a car with positive equity is the best situation for Elyria and Lorrain drivers to be in. The loan will get paid off when you trade it in, and you’ll even have some extra money to put down on your next vehicle!

There’s more to consider when making a vehicle trade-in in Amherst with negative equity. Learn more about your options in the next section.

How to Trade In a Car You Still Owe On with Negative Equity

If you have negative equity, you’re not alone. If possible, Sheffield drivers in this situation should wait until they’re caught up on car payments to trade in their vehicle, but that’s not always an option. In that case, consider the following solutions.

• Pay the difference between your loan balance and your car’s value when you trade it in. Next to waiting until your car is paid off, this is the best course of action to trade in a car with negative equity. If you don’t have the spare cash right now, consider the next option.

• Transfer your balance to a new loan. This would involve trading in your vehicle and taking out a new loan, to which the old loan balance would be added. You should be careful with this option because you’re essentially paying off your old car at the same time as your new car, meaning you’ll be upside down with the new loan. That said, you should choose a cheaper vehicle to minimize the impact and make it easier to get back on track with payments.

Let Us Help with Your Car Trade-In In Amherst!

Allow Spitzer Chevrolet of Amherst to help if you’re not sure how to trade in a car you still owe on. Our finance team can go over your situation and advise you on the best way to move forward. Whether you want to upgrade to a new Chevy or find a more affordable vehicle for under $10K, we can help you achieve your goals!