How to Trade in a Car That is Not Paid Off

Trading in a car for a newer vehicle at Automotive Avenues near Toms River is fairly common. Our team will review a private owner’s vehicle, see if it meets our standards, and make a fair offer on the car, truck, or SUV. Then, you can use the sale proceeds to go toward a down payment on a vehicle from our inventory.

What happens if you want to trade in a car but it’s not paid off? Is this even possible? Do you know how to trade in a car that is not paid off? Yes, you can trade in a car that still has loan payments. It’s not common, but we do see this occasionally. Read our guide on how to trade in a car you still owe on to learn more about this process.

Do You Have Positive or Negative Equity? 

To see how to trade in a car that is not paid off, start by figuring out which of these two situations applies to you.

• Positive equity: your car is worth more than what you still owe
• Negative equity: your car is worth less than what you still owe 

Calculate which equity you have following this process:

1. Determine how much you still owe on the vehicle.
2. Value your trade with our tool.
3. Get some offers for your trade-in.

If the offers you receive are less than the amount you owe, you have negative equity. If the offer is more, your equity is positive.

Positive equity puts you in a better position when learning how to trade in a car that is not paid off. You will be able to trade in your current Trenton ride without owing any amount on the loan. You could put some cash toward another car.

Follow these next steps if you have negative equity for your Howell Township vehicle.

Trading in a Car with Negative Equity

Next, see how to trade in a car you still owe on when you have negative equity. It’s not an ideal situation, but it’s still possible to make it happen.

• Make up the difference you still owe. This is the first option you should consider since it can easily turn your situation for the better. You may have to save up some cash to do this, but it will put you in a better position after learning how to trade in a car you still owe on.
• Another option is to transfer the amount you still owe over to a new loan. Most people choose this option when they have negative equity when trading in a car they still owe on. However, this will increase the loan amount of your new loan, and your monthly payment will be higher. You might be better served to pay off the original auto loan first.

Always read the contract of your auto loan carefully before you act. This will help you learn how to trade in a car that is not paid off.

Learn More About the Trade-in Process with Automotive Avenues 

Have more questions about how to trade in a car you still owe on? Contact us or call 844-988-3545, and we’ll happily answer your questions.