A Guide on How to Trade In A Car That’s Not Paid Off
Upgrading to a new Los Angeles vehicle is exciting. If you are looking to get a more affordable price, trading in your old vehicle is a great option to consider to get you a new ride. However, you may find yourself in a situation where you owe more than the actual value of the car. This is very common. Read our guide below to learn how to trade in a car that’s not paid off.
Positive or Negative Equity
The first thing you need to consider when you are about to sell your car is whether you have positive or negative equity, which is explained below.
- Positive equity: Your vehicle is worth more than your current loan amount.
- Negative equity: Your vehicle is worth less than your current loan amount.
Here are the steps to calculate your equity:
- Determine what you owe on your loan.
- Use our trade-in-calculator to see its current value.
- Subtract the two values to get your equity.
If you have negative equity, you can still trade in your %%target_city_2 vehicle. Find out how below.
Procedures to Trade In A Vehicle That’s Not Paid Off With Negative Equity
If you have negative equity on a Corona vehicle, these steps will show you how to trade in a car that’s not paid off:
- Negotiate: After you have found your dream vehicle, return to your preferred dealer ready to negotiate. Bring along any offers you received to get for a better deal.
- Rollover your current loan. You can work with your lender to transfer the balance of your current loan to your new one. This will allow you to pay off the old loan and the new one simultaneously, while also enjoying a new ride.
- Pay off the difference. If you can afford it, paying off the remaining balance on your auto loan after the sale is ideal.
- Explore third-party options. If you’re displeased with the trade offer you received, you can turn to the open market. Explore other dealers and get trade quotes.
Turn to Ocean Honda of Whittier for Guidance
Do you still need more advice on how to trade in a car that’s not paid off? Contact our team to help guide you through the process or visit our Whittier dealership to speak with our financiers face to face.
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