How to Trade In a Car That Is Not Paid Off

Do you still owe money on a vehicle you’re interested in trading in at a dealership? You can trade in a car you owe money on, but the process may not be as straightforward as trading in a vehicle that is completely paid for, especially if you owe more than your car is worth. Don’t worry if you’re in this situation, because Spitzer Chevrolet DuBois is here to help! Read our guide below to learn the basics of how to trade in a car that is not paid off.

Positive vs. Negative Equity

Determining how to trade in a car that is not paid off depends on whether you have positive or negative equity.

• Positive equity: You owe less than your estimated car trade-in in Dubois
• Negative equity: You owe more than your estimated car trade-in in Dubois

You can value your trade online to estimate how much it’s worth. Then, compare it to your remaining loan balance. You have positive equity if your loan balance is lower than your trade-in estimate. You have negative equity if your loan balance exceeds your trade-in estimate.

Trading in a car with positive equity is the best situation for Clarion and Clearfield drivers to be in. The loan will get paid off when you trade it in, and you’ll even have some extra money to put down on your next vehicle!

There’s more to consider when making a vehicle trade-in in Dubois with negative equity. Learn more about your options in the next section.

Making a Vehicle Trade-In In Dubois with Negative Equity

If you have negative equity, you’re not alone. If possible, Brockway drivers in this situation should wait until they’re caught up on car payments to trade in their vehicle, but that’s not always an option. In that case, consider the following solutions.

• • Pay the difference between your loan balance and your car’s value when you trade it in. Next to waiting until your car is paid off, this is the best course of action to trade in a car with negative equity. If you don’t have the spare cash right now, consider the next option.

• Transfer your balance to a new loan. This would involve trading in your vehicle and taking out a new loan, to which the old loan balance would be added. You should be careful with this option because you’re essentially paying off your old car at the same time as your new car, meaning you’ll be upside down with the new loan. That said, you should choose a cheaper vehicle to minimize the impact and make it easier to get back on track with payments.

Let Us Help with Your Car Trade-In In Dubois!

Don’t worry if you have negative equity in your current vehicle. At Spitzer Chevrolet DuBois, we’re here to meet every customer where they’re at in their journey and help them find the best solution for moving forward. Explore our inventory of used vehicles under $15K if you’re looking for something more affordable, and lean on the friendly people in our finance center to learn more about your options.