How to Trade in a Car That is Not Paid Off

Whether you need a three-row SUV for a growing family or you want to unload an unused second car, sometimes trading in your car is the best way to accomplish your driving goals in Pinebluff. But, what if you’re still currently financing your car? It’s no problem, and Southern Chrysler Dodge Jeep Ram is here to teach you how trade in a car that is not paid off. The trade in process is often the same, but there are a few considerations to keep in mind. Find out how to trade in your car with total confidence, and get started with car buying tips from our experts!

Do You Have Positive or Negative Equity?

If you’re planning a car trade in Camden, the first step is to do your research. Do you have positive or negative equity? What’s the difference anyway? Here’s a quick primer:

• 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 determine your situation, you’ll need to find your current loan balance and the the current value of your vehicle. First, check your monthly statements to find your current loan balance. Then, use a trade-in calculator to determine the current value of your vehicle. You can use our value your trade tool, along with sites like Kelley Blue Book® or Edmunds to get a good range of estimates.

Trading in a Car with Positive Equity

If your car is worth more than you owe on it, you have positive equity. That means that you’re in a good position for a car trade in Sheridan. Just trade in your car at Southern Chrysler Dodge Jeep Ram, and you’ll have money leftover to put toward your new vehicle!

Trading in a Car with Negative Equity

Let’s say your car is worth less than you still owe on it. That’s called negative equity and while it makes your situation a little trickier, you can certainly still trade in your car. Let’s walk through two scenarios for how to trade in a car you still owe:

• Make up the difference you still owe after accounting for the trade-in price. If this is a feasible option for you, it’s the easiest way to turn your situation around. But, this requires a certain amount of spare cash on hand.
• Another option is to transfer the amount you still owe over to a new loan. This is the more common way to deal with negative equity. The downside is that you’ll increase your monthly payments and start in negative equity for your new loan. However, this can be a good option if you downsize to a less expensive model.

Trade In Your Car with Southern Chrysler Dodge Jeep Ram

What if you still have questions about how to trade in a car you still owe on? Don’t hesitate to reach out to us at Southern Chrysler Dodge Jeep Ram to find out more. Our team would be happy to assist you, and we can discuss all your auto financing options in person. Stop by Fordyce or contact us online!