How to Trade in a Car That is Not Paid Off

If you still owe money on your current car but want to upgrade to a new vehicle near Mount Vernon, you may be wondering how to trade in a car that is not paid off. Trading in your current vehicle is often easier and quicker than selling it outright, especially if you owe more than it’s worth. Whether you have equity in your car or are upside down, trading it in could be your best option. So, how do you trade in a car you still owe on? Learn how to trade in a car that is not paid off with the finance team at Victory Mitsubishi!

Do You Have Positive Or Negative Equity? 

To see how you can trade in a car that’s not paid off, you will first determine which of the two situations you are in: 

• Positive equity: Your vehicle is worth more than what you still owe.
• Negative equity: Your vehicle is worth less than what you still owe. 

To calculate which equity you have, you’ll need to know how much you still owe on your current vehicle, how much the car is worth according to Kelley Blue Book® values, and how much you are getting from trade-in offers. If the offer is less than the amount you owe, then it is negative equity. However, if it exceedswhat you still owe, it is positive. 

If you have positive equity, then you’re in the most ideal position in this situation, as the trade-in process will still be prettystraightforward. You will be able to trade in your current New Rochelle ride without owing any amount and even get some you can use toward your next car!

However, if you have negative equity, you will need to consider your options and choose the one that best suits your financial situation.

Trading In A Car With Negative Equity

For Westchester drivers who have negative equity, how do they trade in their car that’s not paid off? There are a couple of options available: 

• Make up the difference you still owe after accounting for the trade-in price. Adding cash on top is the ideal option you should consider, as it can easily improve your situation. While not everyone will have enough spare money to do this, it will work in your favor if you do.
• Another option is to transfer the remaining amount you owe into a new loan. Most people choose this option when they have negative equity and want to trade in their current vehicle that’s not paid off. However, transferring the amount to your new loan can increase the monthly payment, and in the end, you will still be paying for a car that you traded in. In other words, this will leave you upside down on your new loan. If you can’t keep up with your current car payments and are downsizing to a more affordable car, this could be the best option.

No matter which option you end up going with, Victory Mitsubishi recommends that you always read the contract carefully before signing the new car loan. 

Learn More About The Trade-In Process With Victory Mitsubishi 

Do you still have questions about trading in your car that’s not paid off? Reach out to the finance experts at Victory Mitsubishi today, and we can help you! If you just want a new-to-you vehicle in the Bronx area, you will probably be better off waiting until you have paid your car off fully.