How to Trade In a Car That Is Not Paid Off

Whether your family is growing and needs a bigger vehicle or you need to downsize to something more affordable, you may need to know how to trade in a car that is not paid off. It’s possible to trade in your vehicle with a loan balance, but the key determinant for how to handle things depends on how much you owe. With that said, you can read the guide below to learn how to trade in a car you still owe on! Spitzer Autoworld DuBois Cadillac is here to help with workable solutions for your trade-in.

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 Dubois
• Negative equity: You owe more than your estimated car trade-in in Dubois

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 St. Marys and State College 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 Dubois 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, Altoona 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 Dubois!

Do you have additional questions about how to trade in a car you still owe on? Spitzer Autoworld DuBois Cadillac is here for you. Contact us or swing by our finance center to strike up a conversation, and let’s figure out the best way for you to move forward!