How to Trade In a Car That is Not Paid Off

Trading in a car in Chadds Ford is usually simple and straightforward, but what if you’re still in the process of paying off your vehicle? No need to worry, learning how to trade in a car that is not paid off is easier than you might think. However, you might need to take a few extra steps to get the ball rolling. Find out how to trade in a car you still owe on with the finance experts at Mercedes-Benz of West Chester!

Do You Have Positive or Negative Equity?

First things first, do you have positive equity or negative equity? If you’re not sure what those terms mean, here is a brief overview:

• Positive equity: Your car is worth more than what you still owe.
• Negative equity: Your car is worth less than what you still owe.

What if you’re not sure? First, we recommend looking up how much you still owe on your vehicle from your old statements. Next, use our trade-in valuation tool to get an instant estimate of your car’s value. If you have positive equity in Media, simply trade in your car as usual, and you won’t owe any extra money. If you have negative equity, read on!

Trading in a Car with Negative Equity

Now you know how to trade in a car that is not paid off with positive equity, but what about negative equity? You’ll just need to take a few extra steps to complete the trade. Here are the two main ways to do it:

• Make up the difference you still owe after accounting for the trade-in price. If you have the means to take this option, then we recommend it. This is the quickest and easiest way to get out of negative equity.
• Another option is to transfer the amount you still owe over to a new loan. For most drivers, this is the more feasible option. You can roll over your loan to get into your new car faster, but this means you’ll pay for both the new and old loan at the same time. Still, it’s a good option if you’re thinking of downgrading to a less expensive model in Glenmoore.

Trade in Your Vehicle at Mercedes-Benz of West Chester

We’ve gone through the basics of how to trade in a car you still owe on, but what if you still have questions? Contact us at Mercedes-Benz of West Chester at any time, or just stop by our dealership in West Chester! We’d be happy to go over some more car-buying tips.