How to Trade in a Car That is Not Paid Off

If you’ve heard about trading in your car to get some money, many Buffalo drivers have some familiarity. While most trade-in processes are pretty straightforward, if your car isn’t fully paid off, there can be some differences. In fact, one question a lot of Orchard Park customers have asked is “How to trade in a car you still owe on?”

Robert Basil Buick GMC has a lot of experience with used and certified pre-owned vehicles in general. As a result, answering how to trade in a car that is not paid off is something we regularly answer. Read on to learn more about this and consider reaching out to our finance center at (716) 218-8966 or online.

Do You Have Positive or Negative Equity?

An important component when debating how to trade in a car you still owe on is equity. You might determine which of these two situations you’re dealing with:

• Positive Equity: Your car is worth more than what you still owe.
• Negative Equity: Your car is worth less than what you still owe.

To calculate which of these two equities you have, you’ll need to know how much you still owe on your current Buick, GMC vehicle. If you’re unsure, consider Kelley Blue Book® Values and consider how much you’ll gain from any trade-in offers. For those Blasdell customers who have a lower offer than what they owe, it’s negative equity. If it’s more than how much you still owe, it’s positive.

It should be noted that the best possible position for trade-ins is having positive equity. You can trade in your current Buffalo ride without owing too much and have some towards your next car purchase.

Those with negative equity on your vehicle will need to consider all your options and see which one works best for you in your financial condition.

Trading in a Car with Negative Equity

Now that we’ve moved through how to trade in a car that is not paid off, what should you do if you have negative equity? There’s several options for Orchard Park and West Seneca drivers:

• Make up The Difference You Still Owe After Accounting For The Trade-In Price: This is the first option when you want to get this situation resolved. Not every Orchard Park driver has the cash to handle this, yet it can work if you decide to do it.
• Transfer The Amount You Still Owe Over to a New Loan: Many buyers select this option if they have negative equity and are planning to trade in your current car that’s not paid off. Transferring this amount to a new loan will however increase the monthly payment and in the end, you’ll still have to pay for a car that you traded in. More specifically, this can make you upside down on a new loan. If you are unable to keep up with your current car payments and are downsizing with a cheaper vehicle, this is the best option.

Regardless of which option you consider, Robert Basil Buick GMC reminds you to read your contract carefully before signing any new car loans.

Learn More About The Trade-in Process with Robert Basil Buick GMC

Now that you know how to trade in a car that is not paid off, consider Robert Basil Buick GMC for all your car finance needs. Reach out to us with any car trade-in or finance questions and check out our special vehicle offers when you have the opportunity. For those with questions about good used car mileage or how long do car batteries last, we’ve got posts on both. Trade in your car with Robert Basil Buick GMC. See you shortly!