How to Trade in a Car That’s Not Paid Off

How to trade in a car you still owe on depends on whether you have positive or negative equity on your loan. In other words, trading in a car that’s not paid off will be easier if the vehicle is worth more than the amount you currently owe on it:

• Positive equity: the value of your car is more than what you currently owe
• Negative equity: the value of your car is less than what you currently owe

Your dealership should be able to tell you if you have positive or negative equity on your loan, but you can also find out on your own by looking up your vehicle’s Kelley Blue Book value or by using our Value Your Trade tool, and then comparing this figure to the amount you owe on your loan (plus any accrued interest). If you have positive equity, you’re in a good position to make a trade-in-and your dealership can tell you everything else you need to know about how to trade in a car you still owe on.

How to Trade in a Car with Negative Equity

So, what can you do if you’re underwater on your loan, but still need someone to take your vehicle off your hands? Learning how to trade in a car that is not paid off involves a few extra steps, but it’s possible-and there are several routes you can take to get there:

• Pay off the difference: Have cash on hand? You can simply pay the difference between your loan balance and the vehicle’s trade-in value.
• Roll over your loan: A loan rollover combines what you still owe on your old loan with a new loan.
• Look for a better trade-in offer. It’s possible that you could get more for your old car by selling to a different Mesquite-area buyer or by fixing your car before trading it in.
• Get your dealership to match a third-party offer. If this isn’t possible, they may be able to provide you with the value of the difference you still owe on your loan, which you can transfer to your new loan after selling your car to a third party in Richardson.

We Want to Buy Your Car in Dallas!

We’d love to take your old car off your hands and add it to the Rusty Wallis Honda pre-owned inventory! Schedule an inspection at our dealership near Richardson, and we’ll make you a competitive offer on the spot.