How to Trade in a Car You Still Owe On

Sometimes, your situation has changed, and you’re looking to trade in your vehicle. Or, maybe you’ve found a new vehicle that you’d like to upgrade to since it’s a better fit for your Normal lifestyle. In most cases, these two situations are simple and straightforward to deal with, but what happens if you need to trade in a vehicle that you still owe money on?

Typically, the process to trade in a vehicle that you still owe money on is not much different than any other vehicle trade-in. However, there are often nuances with trading in a vehicle with equity, so you’ll want to keep this in mind when you visit our dealership. Learn how to trade in a car that is not paid off today with the finance experts at Sam Leman Ford!

Trade-Ins With Positive & Negative Equity

When you’re learning how to trade in a car you still owe on, it’s important to understand the equity situation that you’re in. Equity is simply the difference between the amount of money you still owe on your vehicle loan and your vehicle’s trade-in value. Having positive equity means that your vehicle is worth more than you owe and typically can help lower the monthly car payment on your new vehicle loan.

On the other hand, negative equity means that your vehicle is worth less than the amount of money you owe left on your auto loan. It’s not the end of the world if you have negative equity, but you’ll surely want to have an experienced team working with you to ensure that you don’t end up in any financial trouble before opting for your next Decatur daily driver.

How to Trade in a Car That Is Not Paid Off

In most cases, having positive equity means your trade-in experience will typically be just like any other trade-in process. However, if you have negative equity, there are different options you have as far as trading your vehicle in. Let’s take a look at how to trade in a car that is not paid off and has negative equity:

• Pay the Difference: One option you have with a negative equity trade-in situation is to simply pay the difference. Paying the difference starts you over when it’s time to finance a new vehicle for your Champaign adventures.
• Transfer the Equity: Depending on your specific situation, you may have the ability to transfer the remaining negative equity over to your new auto loan. This may increase your new monthly car payment, but it might be a good option depending on what you’re looking for.

Get the Trade-In Process Started With Sam Leman Ford Today!

Whatever your situation, you can count on our finance team in Bloomington to assist. We can help you with your equity situation and go over your best options. If you’re still wondering about how to trade in a car you still owe on, or you’re ready to get the trade-in process started, reach out to us online today!