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

Most car shoppers will trade in their current vehicle and use that money towards their next new or pre-owned purchase. The trade-in process at our dealership is straightforward, but the process has more steps if your vehicle isn’t paid off. Wondering how to trade in a car you still owe on? We’re here to help you sell your car to our dealership with our handy guide below. Our financial experts are standing by if you have any questions in the meantime.

How Do I Know if I Have Positive or Negative Equity?

To answer this, you’ll have to first know which of the two situations you’re in:

• 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 which you’re under, you’ll want to know how much you currently owe on your vehicle, how much it’s worth according to Kelley Blue Book®, and how much you’re getting from the trade-in offer. If the offer is less than what you owe, this is negative equity. However, if it’s more than what you owe, then it’s positive.

If you’re trading in a car with negative equity, you can check out your options below:

Trading in a Car with Negative Equity

Oakwood drivers with negative equity are probably wondering how to trade in a car that’s not paid off. You have a few options:

• Make up the difference you still owe after accounting for the trade-in price. If you have enough cash, you can pay off what you owe before buying your next vehicle.
• Another option is to transfer the amount you still owe over to a new loan. Most people choose this option when they have negative equity since they don’t always have the cash to pay off their vehicle. However, this does increase your loan amount and monthly payment.
• If those two options aren’t for you, consider working with a third party and see how the trade-in offers compare to the ones you’ve already received. Third-party pre-owned car companies like Carvana and Carmax will often appraise cars at higher prices, so you may not end up with negative equity!
• If you still have negative equity with a higher appraisal value, you can negotiate with the initial dealership. Show them the offer you received from the third-party company to see if they’ll match it.

Get More Details About the Trade-in Process with Mercedes-Benz of Centerville!

Want to know more about how to trade in a car that’s not paid off? We can help! Our team is here to work with you through the entire trade-in process. And, we’ll help you find your next new or pre-owned vehicle! We’re proud to serve as your go-to destination for all of your automotive needs. Contact us to get things started.