Trading in a car at an auto dealership like Covert Cadillac is a common practice. It allows drivers in Leander to lower their down payment on a newer vehicle while giving an auto dealership a way to replenish its stock of quality used vehicles. The trade-in process for Georgetown drivers is pretty straightforward when the car, truck, or SUV is completely paid off. If you’re wondering how to trade in a car that is not paid off, it is possible but requires a few more steps. Keep reading this guide from our finance team if you want to know how to trade in a car that is not paid off!
Before learning how to trade in a car you still owe on, you have to find out whether you have positive or negative equity. Learn the difference here:
You can easily calculate which kind of equity you have with your current vehicle. First, find out how much you owe with your auto loan. Then, determine your car’s current trade-in value. At this point, you can see what kind of offers you could get for your trade-in from dealerships. If the offer from dealerships is less than the amount you owe, that indicates negative equity. However, if it is more than what you owe on a loan, you have positive equity.
Positive equity for your auto loan gives you the most advantageous position when you learn how to trade in a car you still owe on. The proceeds from the trade-in can go towards your newer vehicle! If, however, you have negative equity, you’ll need to consider several options to decide which suits your situation.
If you’re a Cedar Park driver with negative equity, it takes a little more effort to determine how to trade in a car you still owe on. See your options here:
The best piece of advice we can give when learning how to trade in a car that is not paid off is to always read the contract carefully before signing an auto loan. That way, there are no surprises and you know exactly what you need to do.
If you want to trade in your current vehicle for something newer or you still have questions about how to trade in a car you still owe on, contact us online or call (512) 774-6512. Our Austin finance team is happy to help in any way we can! Find out more about buying or selling a vehicle with our car-buying tips.
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