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

If you’ve ever bought or leased a new-to-you-car, then you’re likely familiar with the process of trading in your old car to a dealership. Selling your car to a dealer like Victory Toyota is a straightforward process, and we’ll handle the logistics while you relax. While you may have sold your car before, you might not have tried to trade a car with a loan balance. Can you trade in a car with a loan balance? Yes, you absolutely can! The finance team here at Victory Toyota will help you learn how to trade in a car that’s not paid off so you can upgrade your Salinas travels in no time!

Do You Have Positive or Negative Equity?

Before you try to sell your car to a dealer, you’ll need to determine if you have positive or negative equity. Explore our breakdown of both here:

• Positive equity: Your car’s value is worth more than what you currently owe on the loan.
• Negative equity: Your car’s value is worth less than what you currently owe on the loan.

To decide which scenario applies to you, you’ll need to determine how much your car is worth. You can use our value your trade tool to get an estimate of your vehicle’s value. From there, you can compare that value to your loan balance to see if you have negative equity or positive equity.

If you have positive equity, then you’re in a prime position to trade your car. You can quickly sell us your vehicle, pay down the loan, and use the proceeds to boost your down payment on your next Monterey ride. On the flip side, if you have negative equity, you’ll want to consult with our team to determine the best route forward for your circumstances.

Options for Trading In A Vehicle That’s Not Paid Off With Negative Equity

If you’re looking to learn how to trade in a car that’s not paid off, you have a few options to explore:

• Make up the difference you still owe after accounting for the trade-in price. This is the first option to select if you can afford it. If you have the extra cash, paying the difference on the loan will result in a seamless transition.
• Another option is to transfer the amount you still owe over to a new loan. This is the most common option – known as “rolling over” a loan. In this scenario, the remaining balance on your current car loan will be transferred to your new loan. So, you’ll essentially pay your old loan and new loan simultaneously. This is a great option if you plan to downsize your car to improve your finances.
• Shop around. If you aren’t satisfied with the trade-in offer you receive from any dealer, feel free to shop around. You can compare offers and negotiate to get the best deal.

Turn to Victory Toyota for Guidance

Still have questions about selling your car to our Seaside dealership? Not to worry! You can contact us at your convenience to receive individualized automotive and financial advice. Our team is here to help you drive home to Watsonville in a vehicle you will love and can truly afford. Shop with us today!