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

Ford Dealership Accepting Trade-Ins in Marshfield, WI

When it’s time to upgrade a vehicle, many drivers have asked us whether they can trade in a car that’s not paid off yet. Our Ford dealership in Marshfield, WI is accepting trade-ins and wants to help you understand how you can trade in your vehicle that you’re still making payments on and haven’t finished paying off. Trading in your current vehicle for a new car always sounds appealing, but can you do so if you are still paying off your existing ride? If you still owe money on your auto loan, you may still be able to trade in your car for something newer. Learn more about the steps to take in order to trade in a vehicle that’s not paid off.

Determining Your Vehicle’s Value

Before you get ready to trade in your vehicle, you need to determine how much your current car is worth. Use a service like Kelley Blue Book or our Value Your Trade tool to get an estimate of your vehicle’s value. Remember that this value will only be an estimate, and your vehicle will need to be physically inspected by our mechanics and sales agents to determine its exact worth. After you have an estimate for your car’s trade-in value, it’s time to compare that number to the amount you still owe on your auto loan. Doing this quick math will determine whether you have positive or negative equity. If you have positive equity, your car’s value is worth more than what you owe on it. When your vehicle is worth less than what you owe, you have negative equity. You might also hear the terms being underwater or upside down on your vehicle in the case of negative equity. Drivers who have positive equity can trade in their vehicles quite easily, while drivers with negative equity still have options to trade up for a new car, truck, or SUV.

Trading in a Car with Negative Equity

Once you’ve figured out that your vehicle has negative equity, there are still ways to trade it in for a newer model. The two main options you have are to pay off the remainder of your loan or to roll over your existing loan into a new loan. If your financial situation has improved since you purchased your vehicle, you might be in a position to pay off the remaining balance. This will make it easier to trade it in for a newer car. Another option is rolling over your auto loan. When you do this, V&H Auto will rollover your existing loan and add it onto your new auto loan.

Trading In Your Vehicle at V&H Auto

Here at V&H Auto, we’re happy to work with all types of drivers, whether you have positive or negative equity. Our finance center will work with you to help you determine the best course of action, including vehicle trade-ins, buying new or used, leasing, and more. Visit our auto dealership or contact us today to get started.

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