How to Trade in a Car That is Not Paid Off

Excited Couple Reviewing Trade in Offer with Salesman

Trading in a car at dealerships in Portsmouth is common among drivers, whether for a new vehicle or cash. However, it gets more complicated when your vehicle isn’t fully paid off. So, are you wondering how to trade in a car you still owe on? 

This guide offers a step-by-step approach to trading in such a car, with insights from the finance team at Hampton Ford Inc on how to trade in a car that is not paid off.

Do You Have Positive or Negative Equity? 

Before diving into how to trade in a car you still owe on, it’s important to determine if you have positive or negative equity. This depends on whether your car’s current value is more or less than what you still owe on your loan.

  • Positive Equity: Your car is worth more than your outstanding loan.
  • Negative Equity: Your car’s value is less than what you still owe.

To check your equity, do these three steps:

  • Find out how much is left on your loan.
  • Check your car’s value using Kelley Blue Book®.
  • Compare it to trade-in offers.

If the trade-in offer surpasses your loan balance, you’re in positive equity; if not, you’re facing negative equity. For those who find themselves in this positive, transitioning to a new vehicle is relatively straightforward, devoid of additional financial implications. However, if negative equity is at play, it’s prudent to weigh everything.

Negative Equity: How to Trade in a Car That is Not Paid Off

For drivers in Dover contending with negative equity, trading in an unpaid-off car necessitates exploring viable strategies:

  • Cover The Difference: Some financially able people may consider paying the difference for the negative equity after viewing their trade-in offer. While this option doesn’t work for everyone, it can help improve the situation.
  • Transfer to a New Loan: Another choice for someone with negative equity is moving their remaining balance to a new loan. But it’s important to be careful, as this could mean higher monthly payments and ongoing financial responsibilities for the traded-in vehicle. It’s crucial to carefully check the terms of a new loan before deciding.

Regardless of what you choose, Hampton Ford Inc always recommends carefully reviewing the new car loan contract before agreeing to anything.

Explore How to Trade in a Car You Still Owe On With Hampton Ford Inc

If you’re unsure how to navigate trading in a car that isn’t paid off, the finance experts at Hampton Ford Inc near Salisbury, MA are ready to help. Whether you’re looking for a used vehicle in North Hampton or need guidance on managing negative equity, our team has valuable expertise to offer.

In summary, while trading in an unpaid-off car adds extra things to consider, understanding your equity status and exploring the right options can make your move to your next new or used vehicle easier.


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177 Lafayette Road (RT.1), North Hampton, NH, 03862
Hampton Ford Inc 42.991348, -070.818823.