How to Trade In a Car That Is Not Paid Off

Tiny car with coins and finance paperwork

How to Trade In a Car That Is Not Paid Off

If you get a competitive offer for your vehicle trade-in in Parma, you might be excited by the prospect of how much it’s worth! You can use your trade-in to upgrade to something better, but what if you still owe money on your vehicle? Can you trade it in? Yes! While it’s less straightforward than trading a vehicle that’s fully paid for, you still have options. Learn more about how to trade in a car that is not paid off with Spitzer Buick GMC Parma below! 

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 Parma
  • Negative equity: You owe more than your estimated car trade-in in Parma

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 Brooklyn and Brook Park 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 Parma with negative equity. Learn more about your options in the next section.

Making a Vehicle Trade-In In Parma with Negative Equity

If you have negative equity, you’re not alone. If possible, Independence 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 Parma!

Whether you have positive or negative equity, Spitzer Buick GMC Parma can help you take the best step forward with your trade-in. Visit our finance center to discuss your options with a friendly professional! We’re here to help with every situation, whether trading in a car you still owe on or getting financing with bad credit.

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6607 Brookpark Rd, Parma, OH, 44129

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Spitzer Buick GMC Parma 41.4186, -81.7294.