How to Trade in a Car That Is Not Paid Off

Excited Couple Reviewing Trade in Offer with Salesman
 

If you need a new ride but still owe money on your current vehicle, you might wonder how to trade in a car that you still owe on. The trade-in process is pretty straightforward when your car is free-and-clear, but it’s a little more complex if you still owe money on it. How do you trade in a car that’s not paid off? Keep reading to learn how to trade in a car you still owe on with the finance team at Show Me Auto Mall, and contact us with any questions.

 

 

Do You Have Positive or Negative Equity? 

The first step in learning how to trade in a car that’s not paid off, is to determine which of the two situations apply to you:

  • Positive equity: The value of your car is more than what you still owe
  • Negative equity: The value of your car is less than what you still owe 

To figure out if you have positive or negative equity, you need to know how much you still owe on your car and how much your car is worth. Look at your loan statement to determine how much you owe on your vehicle, and then do some research to learn your car’s current value. You can use Kelley Blue Book® or use the Show Me Auto Mall value your trade-in tool. If the value is less than you owe, you have negative equity. You have positive equity if it’s worth more than you still owe. 

If you have positive equity, you’re in the best position because the trade-in process around Harrisonville will still be more effortless. You can trade in your current ride without owing anything more and will even have some left over to put toward your next car! But if you have negative equity, you’ll have to consider your options to see what to do next. 

Trading in a Car with Negative Equity

For those Harrisonville drivers with negative equity, how do they trade in a car they still owe on? These options are available: 

  • Make up the difference owed after accounting for the trade-in price. This is the best option because it can quickly improve your situation. Unfortunately, not everyone in Belton has enough spare cash to do this. 
  • Transfer the amount you still owe on your loan to the new loan. This is your only option if you don’t have enough cash available. Still, it’s not ideal because transferring your remaining balance to your new loan will likely increase your monthly payment, and you will be upside-down in your new loan while still paying off your old car. 

Regardless of your choice, we at Show Me Auto Mall recommend that you always read the contract carefully before signing.

Trade in Your Car at Show Me Auto Mall Today!

Trading in your car and choosing a new one is easy at Show Me Auto Mall. Our no-hassle financing means you won’t feel pressured. You can apply for financing online and browse our pre-owned vehicle specials from home. Reach out to the finance team with any questions. We’re here to help!

 

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