How to Trade in a Car That is Not Paid Off

If you’re looking to upgrade your vehicle in Grand Island but still have an outstanding loan balance, you might wonder how to trade in a car that is not paid off. Trading in a car you still owe money on is a common situation, and at Midway Chrysler Dodge Jeep Ram, we’ll help you navigate the process. Understanding how to trade in a car you still owe on can make it easier to manage your finances while getting into a new vehicle.

How to Trade In a Car You Still Owe On 

When you trade in a vehicle with an outstanding loan, the dealership will pay off the remaining loan balance on your behalf. The difference between the value of your trade-in and the amount you owe will determine the next steps: 

• Positive equity: If your car’s trade-in value is higher than the remaining loan balance, you’ll have positive equity. This amount can be applied toward the down payment on your new vehicle.
• Negative equity: If your car’s trade-in value is less than what you owe, you’ll have negative equity. This amount will typically be rolled into the loan for your new vehicle.

How to Trade In a Car You Still Owe On: Steps 

To make the process smooth and hassle-free, follow these simple steps: 

1. Determine the payoff amount. Contact your lender to find out the exact amount you still owe on your vehicle.
2. Get your car appraised. At Midway Chrysler Dodge Jeep Ram, we offer a trade-in appraisal to determine your car’s current value.
3. Review your equity position. Compare your car’s value to the remaining loan balance to see if you have positive or negative equity.
4. Negotiate the deal. Work with the dealership to apply any positive equity toward your new car or roll negative equity into your next loan.

Trade-In Your Car at Midway Chrysler Dodge Jeep Ram

Learning how to trade in a car that is not paid off can simplify your next car purchase. Visit us in Kearney, near Hastings, and Lexington, today to explore your trade-in options and financing options. If you have any questions, reach out to our finance team