How To Trade in a Car That’s Not Paid Off

Many drivers in the Kill Devil Hills region have probably heard of trading in vehicles at dealerships for either a new or used vehicle, or just for cash. The trade-in process is pretty simple when your car’s completely paid off. However, the trade-in process can become much more complicated if you still have an outstanding loan on your car. Find out more from our Boyd’s OBX Chevrolet Finance Center about how to trade in a car that’s not paid off.

Do You Have Negative or Positive Equity?

To figure out how to trade in a car that’s not paid off, you will have to first determine which of the two situations you are in:

• Negative Equity: Your car is worth less than what you still owe
• Positive Equity: Your car is worth more than what you still owe

To calculate which equity you fall under, you’ll need to find out how much you still owe on your current vehicle, how much you’re getting from trade-in offers, and how much the car is worth according to Kelley Blue Book® values.

If you are in a situation where you have positive equity, then you’re in the most ideal position, as the trade-in process will still be relatively simple. You will be able to trade in your current Duck vehicle without owing any amount – you may even have some money left over to purchase a new car!

Unfortunately, if you have negative equity, you’ll have to evaluate your choices and see which one will best fit your current financial situation.

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

For Southern Shores drivers with negative equity, there are a few options for trading in a car that’s not paid off. Their choices are the following:

• If You Still Have Negative Equity with a Higher Appraisal Value, Then Negotiate with the Initial Dealership You Went To – Provide them the offer you got from a third-party company and ask them to match it. If they cannot match it, you can try to ask the dealer for the value of the difference you still owe, so you can sell your car outright to the third-party company while having the difference transferred to your new loan.
• Work with a Third Party and See How Their Trade-In Offers Compare to the Ones You’ve Received from Local Dealerships – Third-party used car companies, such as Carvana and Carmax, tend to appraise cars at higher prices, which might help you not have negative equity anymore!

• Transfer the Amount You Still Owe Over to a New Loan – Most people choose this option when they have negative equity and want to trade in their current vehicle that’s not paid off. However, transferring the amount to your new loan can increase the monthly payment, and in the end you will still be paying for a car that you traded-in. In other words, this will make you upside-down in your new loan. If you can’t keep up with your current car payments and you are downsizing with a cheaper car, this could be the best option for you.

• Make Up the Difference You Still Owe After Accounting for the Trade-In Price – This is the best option you should consider since it can easily turn your situation for the better. While not everyone will have enough spare cash to do this, it will work in your favor if you do.

Find Out More About the Trade-In Process with Boyd’s OBX Chevrolet

If you still have questions about how to trade in a car that’s not paid off, then Contact Us here at Boyd’s OBX Chevrolet for help! However, if you want a brand new vehicle to drive around Kitty Hawk, your best bet is to wait until you’ve paid your current car off completely.

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