How to Trade in a Car That is Not Paid Off?

Woman Standing Outside of Car With Keys
 

Many of our Burlington drivers have heard of trading in used vehicles that they may have finished paying off, but what about trading in vehicles that you haven’t paid off? Learn how to trade in a car that is not paid off with us at Honda North in Danvers! Our finance team put together a guide on how to trade in a car you still owe on, read below. 

Is there Positive or Negative Equity on Your Vehicle?

Before you learn how to trade in a car you still owe on, you’ll need to know the equity value on your Honda model:

  • Positive equity: your vehicle is worth more than what you still owe
  • Negative equity: your car is worth less than what you still owe 

The easiest way to find out which equity you have, find out how much you still owe on your current car loan, use Kelly Blue Book to see how much your vehicle is worth, then how much you will get from trade-in offers. 

Trading in a Car with Negative Equity

For Lynn drivers with negative equity, here is how to trade in a car that is not paid off:

  • Make up the difference you still owe after accounting for the trade-in price. This is the most ideal situation especially if you have enough spare cash.
  • Transfer the amount you still owe over to a new loan. Many Lawrence drivers who have negative equity often choose this route if the car is not paid off. However, by transferring the amount to a new car loan, your monthly payment will be increased. 
  • Work with a third–party car company. Carvana and Carmax are considered third-party used car companies. They often appraise cars at higher prices which can lower your negative equity.
  • If you have a higher appraisal value, then negotiate with the initial dealership you went to. Inform them of the offer from the third-party company and see if they can match it. If not, then see if the dealer will value the difference you still owe so you can sell it to the third-party company directly while taking on the difference to the new loan.

Trade-In Your Vehicle at Honda North 

Now that you know how to trade in a car you still owe on, contact us! We have more information on how to trade in a car that is not paid off and current Honda specials

 

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