How To Trade In A Car That’s Not Paid Off
If the time’s right for you to improve your commute from Brighton to Saline with a new car, you’re likely looking to sell your current vehicle. But what do you do if you still owe money on the car you’re trying to sell? If the value of your current vehicle is less than what you owe, you can turn to the finance experts here at Victory Chevrolet to help you learn how to trade in a car that’s not paid off. Read on below or visit us in Milan for personalized guidance.
Positive vs. Negative Equity
Before you attempt to trade your car or sell it privately, you’ll need to determine if you have positive or negative equity:
- 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 what type of equity you have, you’ll need to determine the value of your current vehicle. You can use our trade-in value calculator to determine the current value of your car. You can compare that figure to the trade-in offers you’ve received. If the offers are more than the value of your vehicle, you have positive equity. Positive equity is ideal and will make trading your car simple.
On the other hand, if you have negative equity, you’ll need to carefully consider your options before you proceed with the sale. Learn techniques on how to trade in a car that’s not paid off with us below!
Options for Trading In A Vehicle With Negative Equity
If you have negative equity, don’t fret! Our team is here to help you consider your options for trading a car that’s not paid off:
- Pay the difference you still owe after accounting for the trade-in price. This option is the most ideal. It will allow you to make a clean transition from one car to the next, without carrying over any debt. However, if you don’t have the spare cash to pay off your loan balance, explore other options below!
- Rollover the loan. This is the most common method selected for those who want to trade in a car that has negative equity. With this method, the lender will pay off your old loan, and transfer the balance to your new one. In the end, you’ll pay off both loans at once. This is a good idea if you plan to downsize to a more affordable vehicle.
- Shop around. Explore dealership offers and see what you might be able to secure for your car on the open market.
- Negotiate. If you’ve found competitive offers at other dealerships, bring them with you when you try to make the sale. Any local data you have on the sale of your type of vehicle can help you negotiate for a better price!
Learn More About Trading-In with Victory Chevrolet
Now that you know how to trade in a car that’s not paid off, you can make your automotive upgrade like a professional. Our Victory Chevrolet team is here to walk you through every step of the process to ensure you get a fair deal. Visit our dealership near Ann Arbor or contact us today to learn more
More from Victory Chevrolet
Common Summer Car Problems Drivers Ignore Too Long
Summer means road trips, vacations, and long days behind the wheel but it also brings intense heat that can take a toll on your vehicle. While some issues seem minor at first, ignoring them can lead to expensive repairs or even leave you stranded when you least expect it. Here are some of the most…
How Hot Weather Affects Your Vehicle
As temperatures climb during the summer months, many drivers focus on staying cool and comfortable behind the wheel. However, extreme heat can take a serious toll on your vehicle as well. From battery performance to tire pressure, hot weather creates unique challenges that can impact your car’s reliability, safety, and longevity. Understanding how summer heat…
What Can You Afford? A Step-by-Step Car Budgeting Guide
Buying a vehicle is exciting, but before you start shopping for your next car, truck, or SUV, it’s important to understand what fits comfortably within your budget. Knowing how much you can afford can help you narrow your options, avoid financial stress, and shop with confidence. Whether you’re purchasing your first vehicle or upgrading to…