How to Trade in a Car That is Not Paid Off

What happens when you want a different vehicle but you haven’t paid off the loan for your current ride? While this is an option, you can expect the trade-in process to involve additional steps. Learn how to trade in a car that is not paid off with Spitzer Hyundai Cleveland below before deciding if this option is right for you near Mentor! 

Can I Trade in a Car That is Not Paid Off?

Yes, you can! Compared to trading in a vehicle that’s paid off, you will need to think about a few additional factors, including:

• Loan Balance: If you don’t already know how much you still owe on your current car loan, you should figure it out by talking to your lender or checking your account statement. This way, you’ll keep your outstanding balance in mind throughout this process. 
• Positive Equity and Negative Equity: Do you have positive or negative equity? You have positive equity if your car’s trade-in value is higher than your loan balance. Positive equity can be applied to purchasing your new vehicle or used as cash back. However, if your loan balance is higher than the trade-in value, you have negative equity or you’re “upside down” on your loan. You should see which you have as it could change your mind about trading in a vehicle that’s not paid off.
• Dealer Assistance: Feel free to discuss your situation with Spitzer Hyundai Cleveland if you plan to trade in your car. We can offer you advice and explore your options near Parma with you.

How to Trade in a Car You Still Owe On

There are several steps you will take when you’re trading in a vehicle you still owe money on:

1. Gather Information: Gather all the necessary documents related to your car, including the title, registration, and loan information. Having this information readily available will make the trade-in process easier.
2. Evaluate Your Car’s Value: Use our trade-in value calculator to see how much your vehicle is potentially worth. This will help you understand the amount of negative equity you may have.
3. Negotiate Trade-in Value: Bring your car to our lot near Bedford for an appraisal. We will give you a trade-in offer, and you may negotiate the offer if you’d like to. 
4. Discuss Loan Payoff: If you have negative equity, you have two options to pay off the remaining balance on your loan. You can pay the remaining balance upfront if you can afford the amount. You can also transfer the amount you still owe over to your new car loan. Keep in mind that this will increase your monthly car payment and immediately put you “upside-down” on your new car as well. You’ll want to make sure you can make these payments as not being able to will put you in a worse position. 
5. Complete the Trade-in: Once you’ve reached an agreement on the trade-in and figured out what to do if you have negative equity, sign the necessary paperwork to transfer ownership of your old car and finalize the process. 

Trade-In Your Car to Spitzer Hyundai Cleveland

After learning how to trade in a car that is not paid off, are you moving forward with this option? If so, work with Spitzer Hyundai Cleveland and conveniently sell your vehicle online! Get started today!