How to Trade in a Car That is Not Paid Off?

Man Signing Paperwork

Many drivers in Coweta County have likely heard of trading in a vehicle at the dealership for either a vehicle that’s new to them or for cash. Even though the trade-in process is straightforward when the car is completely paid off, there are more steps if you’re asking how to trade in a car that is not paid off. How does the process work? The finance experts at Scott Evans Chrysler Dodge Jeep Ram have the answer for you, as well as a convenient online apply for financing form.

Do You Have Positive or Negative Equity? 

To see how you can trade in a car that you still owe on, you’ll have to determine which of these two situations you fall under as a driver in Douglas County:

  • 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 calculate how much equity you have, you’ll need to know how much you still owe on your current vehicle, how much the car is worth according to our value your trade tool, and how much you’re getting from trade-in offers. If the offer is lower than what you owe, that’s negative equity. If you owe less than what the car is worth, you have positive equity.

Trading in a Car with Negative Equity

If you’re a Villa Rica driver with a car with negative equity, how do you trade in a car that’s not paid off? There are several options available to you:

  • Make up the difference before accounting for the trade-in price. This is the first option to consider. If you don’t have the spare cash to do this, there are other options for you, however.
  • Transfer the amount you owe to a new loan. Most people who have negative equity pursue this option. However, this will increase your monthly payment and will mean you’re still paying off the old car.

Scott Evans Chrysler Dodge Jeep Ram Wants to Educate You on Trading In

Do you still have questions about how to trade in a car you still owe on? Our finance experts will guide you through the process. We’re always interested in helping people drive no matter their financial situation. Contact us today to get started.

 

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