How to Trade in a Car That is Not Paid Off

While trading in a vehicle with an outstanding loan is possible, the process will involve additional steps compared to the typical trade-in process. See if this is a good idea for you and learn how to trade in a car that is not paid off with Spitzer Nissan below. Our guide helps interested Van Buren drivers like yourself understand the process better! 

Can I Trade in a Car That is Not Paid Off?

Yes, you can! Compared to trading in a vehicle that’s paid off, you will need to think about a few additional factors, including:

• Loan Balance: If you don’t already know how much you still owe on your current car loan, you should figure it out by talking to your lender or checking your account statement. This way, you’ll keep your outstanding balance in mind throughout this process. 
• Positive Equity and Negative Equity: Do you have positive or negative equity? You have positive equity if your car’s trade-in value is higher than your loan balance. Positive equity can be applied to purchasing your new vehicle or used as cash back. However, if your loan balance is higher than the trade-in value, you have negative equity or you’re “upside down” on your loan. You should see which you have as it could change your mind about trading in a vehicle that’s not paid off.
• Dealer Assistance: Feel free to discuss your situation with Spitzer Nissan if you plan to trade in your car. We can offer you advice and explore your options near McComb with you.

How to Trade in a Car You Still Owe On

There are several steps you will take when you’re trading in a vehicle you still owe money on:

1. Gather Information: Gather all the necessary documents related to your car, including the title, registration, and loan information. Having this information readily available will make the trade-in process easier.
2. Evaluate Your Car’s Value: Use our trade-in value calculator to see how much your vehicle is potentially worth. This will help you understand the amount of negative equity you may have.
3. Negotiate Trade-in Value: Bring your car to our lot near Arcadia for an appraisal. We will give you a trade-in offer, and you may negotiate the offer if you’d like to. 
4. Discuss Loan Payoff: If you have negative equity, you have two options to pay off the remaining balance on your loan. You can pay the remaining balance upfront if you afford the amount. You can also transfer the amount you still owe over to your new car loan. Keep in mind that this will increase your monthly car payment and immediately put you “upside-down” on your new car as well. You’ll want to make sure you can make these payments as not being able to will put you in a worse position. 
5. Complete the Trade-in: Once you’ve reached an agreement on the trade-in and figured out what to do if you have negative equity, sign the necessary paperwork to transfer ownership of your old car and finalize the process. 

Trade In Your Car to Spitzer Nissan

You now know how to trade in a car that is not paid off. So what’s next? Consider this option and if you decide to move forward, take your vehicle to our Findlay lot and enjoy a fair trade-in offer!