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How to Trade in a Car That is Not Paid Off

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If you’re like many Centerville drivers, you might want to know how to trade in a car that is not paid off. Although when the car is paid off completely it’s a simple process, there are some additional steps if there is still a balance on the loan. Let’s learn more about how to trade in a car you still owe on with Voss Hyundai today! For more information, feel free to contact us anytime!

 

 

Do You Have Positive or Negative Equity? 

Before learning how to trade in a car that is not paid off, you would need to know if you have positive or negative equity:

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

To see exactly which type of equity you have, you can use trusted tools such as Kelley Blue Book® to see how much your vehicle is worth for trade-in. If your offer is less than what you owe, you have negative equity, if it’s more, then you have positive equity.

The most ideal position would be positive equity, as the trade-in process is actually much easier. You can trade-in your Dayton ride without owing anything more on the loan, and could even have some left over to put towards your new vehicle. 

On the other hand, if you have negative equity, you might want to see if purchasing a new vehicle is best for you financially.

How to Trade In a Car You Still Owe On

When learning how to trade in a car you still owe on around Miamisburg, you have a few different options to choose from:

  • Make up the difference you still owe after accounting for the trade-in price. This is the best option, as it could improve your financial situation. Although some customers won’t have the additional cash on hand, this is the best option if you have some money to spare.
  • Transfer the amount you still owe over to a new loan. This is by far the most popular option, as transferring the outstanding amount to the new loan is straightforward. However, it’s important to note that this will increase your monthly payment, and make you upside down on the loan. So, if you’re looking for a less expensive car, this could be the best option for you.
  • If these don’t work, we recommend using a third party to see what they offer, and compare it with Dayton dealerships. Companies such as Carvana and Carmax often appraise vehicles at higher prices, which could pull you out of negative equity.
  • If negative equity still exists, you should return to the initial dealership you went to, and see if they can match the price of the third party. Give the dealer the offer you received from the third party, and see if they can match it. If they are unable to match the price, you could ask them for a value of the difference still owed. This will allow you to sell your vehicle to a third party, and transfer the difference to the new loan. 

Regardless of which option you choose, it’s important to carefully read the contract before you sign the new loan. 

Find Your Next Vehicle with Voss Hyundai Today!

Now that you know more about how to trade in a car that is not paid off, come stop by Voss Hyundai for more information. While you’re here, be sure to visit our finance center if you have any questions, and apply for financing to see if you’re approved for your next vehicle around Kettering!

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