How to Trade In a Car That Is Not Paid Off

Tiny car with coins and finance paperwork

You’re not alone if you need to know how to trade in a car you still owe on. Plenty of drivers find themselves in this situation, be it because they need to find a more suitable vehicle for their lifestyle or one that doesn’t cost as much. Lucky for you, you’ve come to the right place for help! Spitzer Chevrolet North Canton explains how to trade in a car that is not paid off in the guide below. We want to help you move forward in the way that makes sense for you!

Positive vs. Negative Equity 

Determining how to trade in a car that is not paid off depends on whether you have positive or negative equity. 

  • Positive equity: You owe less than your estimated car trade-in in North Canton
  • Negative equity: You owe more than your estimated car trade-in in North Canton

You can value your trade online to estimate how much it’s worth. Then, compare it to your remaining loan balance. You have positive equity if your loan balance is lower than your trade-in estimate. You have negative equity if your loan balance exceeds your trade-in estimate.

Trading in a car with positive equity is the best situation for Massillon and Louisville drivers to be in. The loan will get paid off when you trade it in, and you’ll even have some extra money to put down on your next vehicle!

There’s more to consider when making a vehicle trade-in in North Canton with negative equity. Learn more about your options in the next section.

How to Trade In a Car You Still Owe On with Negative Equity

If you have negative equity, you’re not alone. If possible, Canton drivers in this situation should wait until they’re caught up on car payments to trade in their vehicle, but that’s not always an option. In that case, consider the following solutions.

  • Pay the difference between your loan balance and your car’s value when you trade it in. Next to waiting until your car is paid off, this is the best course of action to trade in a car with negative equity. If you don’t have the spare cash right now, consider the next option.
  • Transfer your balance to a new loan. This would involve trading in your vehicle and taking out a new loan, to which the old loan balance would be added. You should be careful with this option because you’re essentially paying off your old car at the same time as your new car, meaning you’ll be upside down with the new loan. That said, you should choose a cheaper vehicle to minimize the impact and make it easier to get back on track with payments.

Let Us Help with Your Car Trade-In In North Canton!

Do you have concerns you want to discuss regarding how to trade in a car you still owe on? Don’t hesitate to reach out to our finance center for answers. We help drivers with all types of financial situations every day, so whether you’re trading in with negative equity or need financing with bad credit, find out how we can help you today in North Canton.

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Spitzer Chevrolet North Canton 40.8848, -81.428.