How To Trade In A Car That’s Not Paid Off

No matter your reason, upgrading to a new Fresno ride is an exciting process. When the time comes to make the switch, you’ll want to sell your current vehicle to make the purchase more affordable. But what happens when you owe more on your loan than what your vehicle is worth? Not to worry! The Freeway Toyota finance team is here to help you learn how to trade in a car that’s not paid off. Read on with us below to learn about selling your car that has a loan balance!

Positive or Negative Equity?

The first thing you need to do when selling your car is determine if you have positive or negative equity. But, what does that mean?

• Positive equity: Your vehicle is worth more than your current loan amount.
• Negative equity: Your vehicle is worth less than your current loan amount.

To figure out if you have positive equity or negative equity, you’ll need to determine how much you currently owe on your car loan. Once you have that number, you can use our trade-in value tool to discover how much your car is worth. If the loan amount is less than your trade value, you have positive equity! This is the ideal situation, as it makes it simple to sell your car and use the excess profits towards your down payment.

On the other hand, if you have negative equity, that means your loan balance is higher than your trade value. In that scenario, you can still sell your car to a dealer, you just need to carefully consider your options. Don’t worry, if you have negative equity, Freeway Toyota can help you upgrade your commute from Tulare to Selma.

Methods to Trade In A Vehicle That’s Not Paid Off With Negative Equity

If you have negative equity, learn how to trade in a car that’s not paid off here:

• Pay off the difference. This practice is great for making a fresh start on an auto loan. If you can afford it, paying off the remaining balance on your auto loan after the sale is ideal.
• Rollover your current loan. Rolling over a loan is an incredibly common practice for drivers looking to make an upgrade. You can work with your lender to transfer the balance of your current loan to your new one. By doing this, you can pay off the old loan and the new one simultaneously, while also enjoying a new ride.
• Explore third-party options. If you’re unsatisfied with the trade offer you received, you can turn to the open market. Visit other dealers and get trade quotes. From there, you can select the best option!
• Negotiate: After you explore the open market, you can return to your preferred dealer ready to negotiate. Bring along any offers you received to barter for a better deal.

Turn to Freeway Toyota for Guidance

Looking for personalized advice on how to trade in a car that’s not paid off? Contact our team at your convenience to discuss your options. You can also visit our Hanford dealership at any point to meet with our financiers directly. Freeway Toyota is your local source for all things automotive!