How to Trade in a Car You Still Owe On

Trading in your vehicle is a great way to put some extra money towards your new auto loan. Whether you’re upgrading to a new or pre-owned vehicle from our inventory, trading in your current ride can likely affect the monthly car payment on your next automotive loan. For the most part, the trade-in process at Transwest Chevrolet is simple.

We’ve got the expertise to work with your specific situation and get you back on the Fort Morgan roads in a new vehicle in no time. But, what happens if you still have a loan on the vehicle you’re trading in? Today, the finance experts from Transwest Chevrolet will help you learn how to trade in a car that’s not paid off, so that you can upgrade to a new ride that better suits your needs!

Equity & Trade-Ins

Before we go over how to trade in a car you still owe on, it’s important that you understand how equity works with a trade-in. In almost every case, you’ll have some type of equity when you’re trading in your vehicle. Equity is simply the difference between your vehicle’s worth and the amount of money you owe left on your automotive loan.

Determining your equity is simple, all you have to do is find your vehicle’s trade-in value. In fact, you can even do it from the comfort of your own Holyoke home with our trade-in tool. After you figure out your trade-in estimate, you can easily determine your equity situation. The two kinds of equity for a vehicle trade-in include:

• Positive Equity: Positive equity means your car’s trade-in value is worth more than the amount of money you owe left on your auto loan.
• Negative Equity: Positive equity means your car’s trade-in value is worth less than the amount of money you owe left on your auto loan.

How to Trade in a Car That’s Not Paid Off – Options With Negative Equity

Positive equity is typically more straightforward in a vehicle trade-in because that extra amount is simply being applied towards your new vehicle loan, similar to a down payment. On the other hand, negative equity situations are a bit more involved, but it’s still not complicated as long as you have a trusted dealership you can work with like ours.

Make the trip from Brush to our dealership, and we’ll be more than happy to help you with your vehicle trade-in. If you’ve got negative equity, here’s how to trade-in a car that’s not paid off:

• Pay the Difference: If you’re able to, paying off the difference between your vehicle’s trade-in value and the amount that’s owed left on your auto loan is one of the simplest options. This way, you can easily apply for a new vehicle loan and “start fresh.”
• “Roll Over” Equity: When you “roll over” your negative equity, you’re essentially moving that mount over to your new loan. You’re still paying for that amount that’s owed, it’ll just be combined with your new auto loan.
• Determine Trade-In Value: If you can’t pay the difference and don’t want to roll over your equity, it may be a good idea to re-evaluate your trade-in offer. We do our best to offer you a fair amount on your trade-in. But, we recommend you check your trade-in value with other tools as well to confirm your trade-in appraisal.
• Negotiate: Sometimes, you may be able to negotiate your trade-in appraisal. We try to provide the most accurate trade-in appraisal possible, but if you don’t think it’s fair, you can always try to negotiate.

Trade in Your Car Today With Transwest Chevrolet!

Now that we know how to trade in a car you still owe on, are you ready to trade in your car with us at Transwest Chevrolet? Stop by our Sterling dealership, and we’ll take care of your trade-in and make the process as smooth as possible. To get started, reach out to us today!