How to Trade In a Car That Is Not Paid Off

Do you have a vehicle you want to trade in that isn’t paid off yet? You can trade in a vehicle with remaining loan payments, but you may encounter a few more hurdles than if you were trading in a car that’s fully paid for. Spitzer Acura is here for local drivers wondering how to trade in a car that is not paid off! Start today by reading the guide below, then visit our dealership to learn how we can help you.

Positive vs. Negative Equity 

Determining how to trade in a car that is not paid off depends on whether you have positive or negative equity. 

• Positive equity: You owe less than your estimated car trade-in in McMurray
• Negative equity: You owe more than your estimated car trade-in in McMurray

You can value your trade online to estimate how much it’s worth. Then, compare it to your remaining loan balance. You have positive equity if your loan balance is lower than your trade-in estimate. You have negative equity if your loan balance exceeds your trade-in estimate.

Trading in a car with positive equity is the best situation for Bethel Park and Canonsburg drivers to be in. The loan will get paid off when you trade it in, and you’ll even have some extra money to put down on your next vehicle!

There’s more to consider when making a vehicle trade-in in McMurray with negative equity. Learn more about your options in the next section.

Making a Vehicle Trade-In In McMurray with Negative Equity

If you have negative equity, you’re not alone. If possible, Pittsburgh drivers in this situation should wait until they’re caught up on car payments to trade in their vehicle, but that’s not always an option. In that case, consider the following solutions.

• Pay the difference between your loan balance and your car’s value when you trade it in. Next to waiting until your car is paid off, this is the best course of action to trade in a car with negative equity. If you don’t have the spare cash right now, consider the next option.
• Transfer your balance to a new loan. This would involve trading in your vehicle and taking out a new loan, to which the old loan balance would be added. You should be careful with this option because you’re essentially paying off your old car at the same time as your new car, meaning you’ll be upside down with the new loan. That said, you should choose a cheaper vehicle to minimize the impact and make getting back on track with payments easier.

Let Us Help with Your Car Trade-In In McMurray!

When you want a dealership that understands your needs and is ready to help you move forward in a positive direction, turn to Spitzer Acura. Whether you have positive or negative equity, we can help you trade-in for a sleek new Acura or an affordable used car under $10k. We look forward to working with you when you’re ready!