How to Trade In a Car That is Not Paid Off

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Whether you’re looking to upgrade your adventures around Guymon, OK or you’re looking for loan payments that are more manageable, you may be wondering about how to trade in a car that is not paid off. While the trade-in process for a vehicle you own is relatively straightforward, there are a few more steps for how to trade in a car you still owe on. Learn more about your trade-in options with the finance team at Duncan Chevrolet Co., Inc..



Deciding Whether You Have Negative or Positive Equity

The first step for learning how to trade in a car that is not paid off is by understanding whether you have negative or positive 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

Determining which equity type you have comes from knowing how much you still owe on your current vehicle, how much your vehicle is worth according to Kelley Blue Book® values, and seeing how much you are getting from trade-in offers. If the amount you’re offered is less than what you owe, this is negative equity. The opposite is true for positive equity, which is when your offer is more than what you owe.

Positive equity puts you in the most ideal position when you want to trade in your current vehicle around Amarillo. This means that you won’t owe any additional money towards the vehicle, and you may be able to have extra for your next car!

Although, if you’re left with negative equity, you should consider the options for how to trade in a car you still owe on below and choose the one that works best for your financial situation.

How to Trade in a Car You Still Owe On

You’re not out of options around Dalhart when you need to trade in your vehicle. Here are several options for you to choose from:

  • Make up the difference you still owe after accounting for the trade-in price. The simplest option for how to trade in a car that’s not paid off is to pay the balance out of pocket. However, not everyone has the spare cash to do this if there’s no room in the budget and the difference is still too great.
  • Another option is to transfer the amount you still owe over to a new loan. This is popular among drivers trading in a vehicle with negative equity. However, keep in mind that the amount just gets transferred to your new loan, with a possible increase to your monthly payment. This process means you’re upside-down on your new loan, but it’s an easier option if your current payments are too much.
  • Work with a third party and see how the trade-in offers compare to the ones you have gotten from your local dealerships. If neither of the previous options works, take time to discuss your trade-in with third-party used car companies. Companies such as Carvana and Carmax often appraise cars at higher prices, putting you in a better position with your negative equity. It can even allow you to not have negative equity anymore!
  • If you still have negative equity with a higher appraisal value, then negotiate with the initial dealership you went to. Even if you still have negative equity, you can try to bring your third-party offer to the dealership to see if they’ll match it. If matching the price isn’t an option, try asking the dealership for the value of the difference you still owe. From there, you can sell your car to a third-party company while having the difference transferred to your new loan.

Whichever option you choose, be sure to always read the terms of your contract carefully before signing a new loan.

Trade-In Your Vehicle with Duncan Chevrolet Co., Inc.!

Now that you know how to trade in your car around Stratford, start the process with Duncan Chevrolet Co., Inc. and value your trade today. If you have any questions about your financing options, don’t hesitate to contact us.


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