How to Trade in a Car That is Not Paid Off

You’ve probably probably heard of the benefits of trading in a car at a dealership. It’s quick and easy, and you can take the money from the sale or use it to purchase a new or used car. While it’s true that the trade-in process is simple, some New Philadelphia are left with questions about how to trade in a car that is not paid off. The finance team at Parkway Honda is here to streamline the process. Keep reading to learn more about how to trade in a car that you still owe on at a dealership like Parkway Honda!

Do You Have Positive or Negative Equity?

Before you trade in a car that’s not paid off, you’ll first want to figure out if you have negative or positive equity. Here are the differences between the two:

• Positive equity: You owe less than what your car is worth.
• Negative equity: You owe more than what your car is worth.

Use sources like Kelley Blue Book® to estimate how much your car is worth on the market and compare that value with how much you still owe. You’ll also want to compare your trade-in offer/s to how much you owe. If the amount you owe is greater than the trade-in offer, then you have negative equity. If the trade-in offer is greater than what you owe, you have positive equity.

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 Uhrichsville ride without owing any amount and even have some you can use towards your next car!

Trading in a Car with Negative Equity

Uhrichsville drivers with negative equity aren’t totally out of options. Decide which course of action is right for you:

• Make up the difference you still owe after accounting for the trade-in price. Not everyone has the spare funds to do this, but if you can, it’ll work in your favor.
• Another option is transferring the amount you still owe over to a new loan. If you don’t have the money to cover the difference, consider rolling the amount you’ll still owe into a new auto loan for a new or pre-owned car. This will make you upside-down on your new loan and will likely increase the money payment. You’ll still be paying for the car you intend to trade in.

Regardless of the choice you make, always read the contract carefully before signing the paperwork for a new car loan.

Learn More About the Trade-in Process with Parkway Honda

Do you still have questions about how to trade in a car that is not paid off? We’re here to help! Contact us online or call us at 330-364-8661 to learn more about your options. While you’re here, browse our new vehicle specials and used vehicle offers for opportunities to save on your next vehicle near Coshocton!