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How to Trade in a Car That Is Not Paid Off

Woman handing over car keys

If you’re looking to trade in your current car for cash, then bring it over to Ron Sayer Nissan for an easy trade-in process that can get you a top-dollar offer for your vehicle. The trade-in process is relatively simple, but for some Pocatello drivers that still owe money on their current vehicle, the process can seem a little more complicated. If you owe money on your car or have negative equity, then it’s entirely possible to trade in your vehicle. Learn how to trade in a car you still owe on with the finance center at Ron Sayer Nissan.

Positive Equity vs. Negative Equity

Before trading in your vehicle, you’ll need to determine if you have positive equity or negative equity on it. If you’re like many Ammon drivers, then you might not know what the difference is or how to know if have negative equity on your vehicle. Here is the difference between the two equity types:

  • Positive Equity: The trade-in value of your car is worth more than what you currently owe. So, for example, if you still owe $7,000, but your car has a trade-in value of $8,000, then you have positive equity on your vehicle. Value your trade at Ron Sayer Nissan.
  • Negative Equity: The trade-in value of your car is worth less than what you currently owe on it. For example, if you owe $7,000, but your car is valued at $6,000, then you have negative equity.

If you have negative equity on your vehicle, then it’s not impossible to trade in your vehicle. It just means you have to take some different steps. Learn how to trade in a car that is not paid off or has negative equity by considering the options below.

How to Trade in a Car You Still Owe On

If what you still owe on your vehicle is less than what it’s currently valued at, then there are different options you can take:

  • Paying the Difference: Subtract what you still owe from your trade-in offer, and consider that you’ll have this much left over after you trade-in your vehicle. Even if you don’t have enough cash on hand to cover the difference, this will still lower what you owe.
  • Roll Over the Amount: Many Rexburg drivers often choose to roll over the remaining amount onto a new car loan. This doesn’t mean that your old car loan goes away, but it just means that whatever you owe on the vehicle you traded in will be transferred over to your new vehicle loan and added to the new vehicle loan amount.
  • Compare Offers: If you don’t like the offer that you have gotten from certain dealerships, then explore other third-party options like Carvana and CarMax. These third-party companies tend to offer higher trade-in values than some dealerships do.
  • Negotiate the Offer: Show the dealership you’re working with offers that you’ve gotten from other third-party companies, and try to negotiate the final offer. If the dealership can’t match the offer, then see if you can ask the dealership about the difference you still owe on the vehicle. This way, you can sell your car to the third-party company while having the difference transferred, or rolled over, to your new vehicle loan.

If you found this information helpful, then check out some of our other car-buying tips and tricks at Ron Sayer Nissan.

Get More Out of Your Trade-In at Ron Sayer Nissan

Now that you know how to trade in a car that is not paid off or that has negative equity, visit our dealership in Idaho Falls to see what we can offer you for your vehicle. If it’s right for us, then we’ll give you a great offer for your car. We make selling to a dealership easy and convenient.

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