How to Trade in a Car That is Not Paid Off

Many Elk Grove-area drivers have probably heard of trading in their vehicles at dealerships for either like-new models or cash. While your trade-in process is straightforward if it’s paid off, there are more steps if the car’s not paid off. So, how do you trade in a vehicle that hasn’t been paid off? You might also ask, “Where can I trade in my car near Roseville? Learn more from the finance team at Kareem Auto Sales Inc about trading in a car that isn’t paid off!

Do You Have Positive or Negative Equity? 

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

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

To calculate which 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 Kelley Blue Book® values, and how much you are getting from trade-in offers. If the offer is less than the amount owed, it is negative equity. However, if it is more than how much you still owe, then it is positive. 

If you have positive equity, you’re in the most ideal position in this situation, as the trade-in process will still be fairly easy. You can trade in your current Roseville ride without owing any amount and even have some you can use towards your next car! However, if you have negative equity, consider all your options and see which will work best for your financial situation.

Trading in a Car with Negative Equity

For Folsom drivers with negative equity, how do they trade in a vehicle that’s not paid off? There are a couple of options available: 

• Make Up The Difference You Own After Accounting For The Trade-In Price: This is the first option you should consider since it can improve your situation. While not everyone will have enough spare cash to do this, it will work in your favor if you do.

• Transfer The Amount You Still Owe 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 you traded in. In other words, this will make you upside-down in your new loan. When you can’t keep up with your current car payments and are downsizing with a cheaper model, this is the perfect solution. 

No matter which options you end up going with, Kareem Auto Sales Inc recommends you always read the contract carefully before signing the new car loan. 

Learn More About the Trade-in Process with Kareem Auto Sales Inc 

Where can I trade in my car near Elk Grove? Contact the team at Kareem Auto Sales Inc and we can help with all your car financing needs. You can also explore our low-mileage models and certified pre-owned vehicles to see what catches your attention and if you want to switch to another option. Explore all your trade-in options near Roseville at Kareem Auto Sales Inc!