How to Trade in a Car That is Not Paid Off

If you are in the market for a new vehicle around Cherry Hill, you may be interested in trading in your current car. While the process is pretty simple and straightforward if that vehicle is already paid off, it can be a bit more complex if you are still paying on the loan. Wondering how to trade in a car you still owe on? The finance experts at Nissan of Turnersville explain how to trade in a car that is not paid off below.

Do You Have Positive or Negative Equity? 

Before you learn how to trade in a car that is not paid off, you need to know if you have positive or negative equity on your vehicle loan. 

• Positive equity: your car is worth more than what you still owe
• Negative equity: your car is worth less than what you still owe 

If you have positive equity, then you’re in the most ideal position. Trading in your vehicle should still be a pretty simple process. If this is the case, you can trade in your current car without owing more on the loan. You may even have money left over that can help cover the cost of your next car from us. 

However, if you have negative equity, things may be trickier. Let’s take a closer look at how to trade in a car you still owe on with negative equity. 

Trading in a Car with Negative Equity

You have a few different options available to you if you have negative equity on your current vehicle. 

• Make up the difference you still owe after accounting for the trade-in price. If you happen to have the spare cash available, this is the best choice. 
• Transfer the amount you still owe over to a new loan. Keep in mind that this option increases your monthly payment, and you are technically still paying for a car you no longer own. This means you are also upside-down on your new loan. However, If you are unable to keep up with your current car payments and you are downsizing with a cheaper car, this is definitely a viable option. 

Learn More About How to Trade in a Car You Still Owe On Today

If you still have questions about how to trade in a car that is not paid off, reach out to the team at Nissan of Turnersville today. We would be more than happy to answer any questions you have about auto financing.