How to Trade in a Car That Is Not Paid Off

If you still owe money on your car but you would like to trade it in, do you have options? Yes! Of course, you will want to how to trade in a car you still owe on the right way. The trade-in process for a vehicle you haven’t paid off is pretty similar to trading in a car that is paid off but, depending on whether you have positive or negative equity, there are a couple of steps that could be different. Before you make any steps forward, read the guide below to learn how to trade in a car that is not paid off with the Dale Earnhardt Jr Buick GMC Finance Center.

Positive or Negative Equity

To determine how to trade in a car that is not paid off, you first need to understand whether you have positive equity or negative equity. 

• Positive equity: You owe less than what your car is currently worth
• Negative equity: You owe more than what your car is currently worth

To get started, you can value your trade using our simple calculator. This will show you an estimate of your vehicle’s current value. You will also need to know your current loan balance. If the trade-in estimate for your vehicle is lower than the amount you still owe, then you have negative equity. If the trade-in estimate is greater than the amount you owe, then you have positive equity. 

Positive equity is the best situation when trading in a car that isn’t paid off yet near Thomasville, GA or Crawfordville. Why? Positive equity means you can trade in your car while paying it off in full and still be left with some credit you can apply to your next purchase.

If you have negative equity and need to know how to trade in a car you still owe on, there are a couple of options to consider. Read on to learn more.

How to Trade in a Car with Negative Equity

Wondering how to trade in a car that isn’t paid off and has negative equity? Panama City drivers in this situation do not have an abundance of options, but the two most common solutions can help you get to a better place with your car loan. Learn more, here:

• Pay off the remaining balance in cash. If the difference between what you owe and what your car is worth isn’t a significant amount, you may be able to find some extra funds to pay off the balance and trade in your car immediately. If you don’t have the spare cash at the moment, consider this next option.
• Transfer the balance onto a new loan. You may experience a financially straining event like a major home repair. Setbacks like this are common, and they can cause a car that was once affordable to become too expensive to afford. In this situation, you can consider trading in for a more affordable vehicle and transferring your balance onto a new loan. There would be a period where you are still upside down on the loan, but the lower payment on the cheaper vehicle can help you turn it around sooner than you might think.

Learn More About Your Options at Dale Earnhardt Jr Buick GMC

No matter what type of situation you’re facing with your trade-in vehicle, Dale Earnhardt Jr Buick GMC wants to help you make an improvement. Take a look at the affordable vehicles in our pre-owned specials, and don’t hesitate to contact us if you have any other questions!