Are you looking to upgrade your ride but your current vehicle is not paid off? If so, you might be wondering how to trade in a car you still owe on. Although the entire process is easy when the car is already paid off, there are a few more steps when there is still a balance on the loan. Learn more about how to trade in a car you still owe on with Sam Leman Automotive Group today! For more information, feel free to contact us anytime!
When learning how to trade in a car you still owe on, you’ll need to figure out if you have positive or negative equity:
To figure out which type of equity you have, you need to know how much you currently have on your loan and how much the vehicle is worth based on Kelley Blue Book® values. If the trade-in offer is less than what you owe, you have negative equity, however, if it’s more than what you owe, you have positive equity.
Having positive equity is ideal, as the entire process will be much easier than if it was negative. You won’t owe anything on your loan if it’s positive, and you can trade in your current Bloomington, Morton, Peoria vehicle without adding more to your new loan.
If you have positive equity, then you’re in the most ideal position in this situation, as the trade-in process will still be fairly easy. You will be able to trade in your current ride without owing any amount and even have some you can use towards your next car!
If you do have negative equity, it’s best to really consider your options for purchasing a new vehicle.
When learning how to trade in a car that’s not paid off with negative equity, you should consider a few different options around :
Regardless of which option you choose, we recommend carefully reading the contract to prevent any confusion or surprises in the future.
Now that you know more about how to trade in a car you still owe on, come stop by Sam Leman Automotive Group for an appraisal! While you’re here, check out our new vehicle inventory, and visit our finance center to discuss buying options around Bloomington, Morton, Peoria! Be sure to use our new vehicle specials to save even more on your new ride today!
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