How to Trade in a Car That is Not Paid Off?

Before you bring home your next ride on Golden and Fort Collins roads, you might be wondering if you can trade-in a car that’s not yet paid off. While it surely makes the trade-in process easier if you have paid off the car in full, this option can still be done to get you behind the wheel of a ride better suited to your needs. Learn more about how to trade in a car that is not paid off with the automotive finance experts at Fisher Acura today!

Is there Positive or Negative Equity on Your Vehicle?

As part of learning how to trade in a car you still owe on, you’ll need to know the equity value of the vehicle you own around Fort Collins. There are two types of equity and you can refer to the Kelly Blue Book to see which you have and how much your vehicle is worth. This will also impact the offers you’ll receive. See the differences between each below:

• Positive equity: your vehicle is worth more than what you still owe
• Negative equity: your car is worth less than what you still owe

Trading in a Car with Negative Equity

Even if you’re among any Fort Collins customers with negative equity, here’s how to trade in a car that is not paid off below:

• Make up the difference you still owe after accounting for the trade-in price. This is the most ideal situation especially if you have enough spare cash.
• Transfer the amount you still owe over to a new loan. Many Thornton drivers who have negative equity often choose this route if the car is not paid off. However, by transferring the amount to a new car loan, your monthly payment will be increased.
• Work with a third–party car company. Carvana and Carmax are considered third-party used car companies. They often appraise cars at higher prices which can lower your negative equity.
• If you have a higher appraisal value, then negotiate with the initial dealership you went to. Inform them of the offer from the third-party company and see if they can match it. If not, then see if the dealer will value the difference you still owe so you can sell it to the third-party company directly while taking on the difference to the new loan.

Trade-In Your Vehicle at Fisher Acura Today

Once you’ve read about how to trade in a car you still owe on, seal the deal on your next Thornton ride. Find more helpful finance tips and tricks at Fisher Acura and explore great savings on your next ride with our new vehicle specials. You can also get started at home with our online financing application or monthly payment calculator. Contact us today for more information on how to trade-in a car that is not paid off or stop by our Acura dealership right here in Boulder!