How To Trade In A Car That’s Not Paid Off

A lot of drivers in Lake Havasu City and elsewhere have probably heard of trading in their vehicle at a dealership for either a different vehicle or for cash. Even though the trade-in process is relatively straightforward if the car is paid off, trading in a car is different — though possible — when you still have a loan to pay off. Do you know how to trade in a car that’s not paid off? Anderson Auto Group has a quick primer on it if you don’t!

Do You Have Positive or Negative Equity? 

There are two situations that Bullhead City drivers will face when they want to trade in a car. Here they are:

• Positive equity: your car is worth more than the remaining balance on the loan
• Negative equity: your car is worth less than what you still owe

To calculate your equity, you’ll need to know what you still owe on your current vehicle, how much your car is worth according to a guide like Kelley Blue Book, and how much you are getting from your trade-in offer. Before trading in a vehicle, you need to have all three of these figures set. If your trade-in value is more than what you owe, you have positive equity.

Options for Trading In A Vehicle That’s Not Paid Off With Negative Equity

If you’re a Kingman driver who has negative equity, how do you trade in a car that’s not paid off? You’ve got several options for trading in a car, including:

• Make up the difference you owe after accounting for trade-in price. This is the first option you should consider because this will improve your financial situation. Not all people have the spare cash to do this, but it will work in your favor if you do.
• Transfer the amount you still owe to a new loan. Most people pick this option if they have negative equity and want to trade in their car for a new one. However, transferring the amount to your new loan will increase your monthly payment and you’ll still be paying off the car you trade in. If you can’t keep up with your current car payments and want to downsize with a cheaper car, this is the option for you.

Find More About Trading in Your Car with Anderson Auto Group 

Trading in a car that’s not paid off can get you in a better financial position. Let Anderson Auto Group help you with that! Contact us today to get your vehicle taken care of the right way. We’re more than happy to help.