How to Trade in a Car That is Not Paid Off

Do you want to upgrade your vehicle in Princeton but it still has an outstanding loan? You can trade in a car that’s not paid off though there are extra steps that you will need to consider. Spitzer Chrysler Dodge Jeep Ram Homestead’s finance team will teach you how to trade in a car that is not paid off, so you can understand the process better. Learn more below! 

Can I Trade in a Car That is Not Paid Off?

Yes, you can! Compared to trading in a vehicle that’s paid off, you will need to think about a few additional factors, including:

• Loan Balance: If you don’t already know how much you still owe on your current car loan, you should figure it out by talking to your lender or checking your account statement. This way, you’ll keep your outstanding balance in mind throughout this process. 
• Positive Equity and Negative Equity: Do you have positive or negative equity? You have positive equity if your car’s trade-in value is higher than your loan balance. Positive equity can be applied to purchasing your new vehicle or used as cash back. However, if your loan balance is higher than the trade-in value, you have negative equity or you’re “upside down” on your loan. You should see which you have as it could change your mind about trading in a vehicle that’s not paid off.
• Dealer Assistance: Feel free to discuss your situation with Spitzer Chrysler Dodge Jeep Ram Homestead if you plan to trade in your car. We can offer you advice and explore your options near Florida City with you.

How to Trade in a Car You Still Owe On

There are several steps you will take when you’re trading in a vehicle you still owe money on:

1. Gather Information: Gather all the necessary documents related to your car, including the title, registration, and loan information. Having this information readily available will make the trade-in process easier.
2. Evaluate Your Car’s Value: Use our trade-in value calculator to see how much your vehicle is potentially worth. This will help you understand the amount of negative equity you may have.
3. Negotiate Trade-in Value: Bring your car to our lot near Key Largo for an appraisal. We will give you a trade-in offer, and you may negotiate the offer if you’d like to. 
4. Discuss Loan Payoff: If you have negative equity, you have two options to pay off the remaining balance on your loan. You can pay the remaining balance upfront if you afford the amount. You can also transfer the amount you still owe over to your new car loan. Keep in mind that this will increase your monthly car payment and immediately put you “upside-down” on your new car as well. You’ll want to make sure you can make these payments as not being able to will put you in a worse position. 
5. Complete the Trade-in: Once you’ve reached an agreement on the trade-in and figured out what to do if you have negative equity, sign the necessary paperwork to transfer ownership of your old car and finalize the process. 

Trade In Your Car to Spitzer Chrysler Dodge Jeep Ram Homestead

Now that you know how to trade in your car that is not paid off, be sure to consider your situation and see if you should continue with the trade-in. If you decide to move forward with the trade-in, bring your vehicle to our Homestead showroom and we’ll give you a fair offer!