How to Trade in a Car That is Not Paid Off

Many drivers in Topeka are familiar with the process of trading in their vehicles at dealerships, whether it be for a new car or cash. But things get a bit trickier when your car isn’t fully paid off. So, how do you trade in a car that is not paid off? This guide breaks down the steps for trading in a car that’s not entirely paid off, with tips from the finance team at Aristocrat Motors Topeka.

Do You Have Positive or Negative Equity? 

Before diving into how to trade in a car you still owe on, it’s essential to figure out if you have positive or negative equity. This depends on whether your car is currently worth more or less than the amount you still owe.

• Positive Equity: Your car is worth more than your outstanding loan.
• Negative Equity: Your car’s value is less than what you still owe.

To check your equity, do these three steps:

• Find out how much is left on your loan.
• Check your car’s value using Kelley Blue Book®.
• Compare it to trade-in offers.

If the offer is less than what you owe, you’ve got negative equity; if it’s more, you’re in the positive. If you’re in the positive, swapping for a new car is pretty smooth, and you won’t face extra costs. But if it’s negative, take your time to weigh your options.

Trading in a Car with Negative Equity

For drivers in Manhattan facing negative equity, trading in a car that’s not paid off requires exploring viable options:

• Cover the Difference: If you can swing it financially, think about paying off the negative equity after considering the trade-in price. While not everyone might have the cash, going this route can significantly improve your situation.
• Transfer to a New Loan: Another option for those in negative equity is shifting the remaining balance to a new loan. Be cautious, though—this might mean higher monthly payments and continuing to pay for a car you’ve traded in. Take a close look at the new loan terms before committing.

No matter your choice, Aristocrat Motors Topeka recommends thoroughly examining the new car loan contract before putting pen to paper.

Learn How to Trade in a Car You Still Owe On with Aristocrat Motors Topeka

If you’re unsure about how to trade in a car that is not paid off, the finance experts at Aristocrat Motors Topeka near Kansas City are ready to help. Whether you’re looking for a used vehicle in Topeka or need advice on handling negative equity, our team has valuable insights to share.

In summary, while trading in an unpaid-off car adds some extra things to think about, knowing your equity status and considering the right options can make your move to the next new or used vehicle a breeze.