How to Trade in a Car That Is Not Paid Off

If you’re looking for a new vehicle for your Beckley commute, then you’ve probably considered trading in your current vehicle to put some additional cash towards your new purchase. But, if you have a vehicle that’s not entirely paid off yet, then you might be hesitant about trading in your current vehicle. Learn how to trade in a car you still owe on with the finance team here at Mercedes-Benz of Charleston. We’ll show you how to trade a car with payments and still get a good deal for your trade-in, so you can put more towards a brand-new vehicle.

Positive Equity vs. Negative Equity

Before learning how to trade in a car that is not paid off, the first thing you’ll need to do is figure out whether your vehicle has positive equity or negative equity. If you’re like many Huntington drivers, then you may be unfamiliar with what these terms mean. Below, we break down what positive equity and negative equity mean:

• Positive Equity: Your car’s trade-in value is higher than the money you still owe. For example, your car is worth $10,000, and you owe $8,000 on it, so you would have $2,000 of positive equity.
• Negative Equity: Your car’s trade-in value is less than the money you still owe. For example, your car is worth $10,000, and you owe $11,000 on it, so you would have $1,000 of negative equity.

To find out what your vehicle is currently worth, then value your trade here at Mercedes-Benz of Charleston. This will give you an estimate of what you can expect to get for your vehicle and whether or not you have positive or negative equity. If you’re unsure about how much you still owe on your vehicle, then you’ll want to contact your lender to find out for sure.

How to Trade in a Car With Negative Equity

If you’re trying to learn how to trade in a car you still owe on, and you find out you have negative equity, then you may feel overwhelmed. However, having negative equity on your vehicle isn’t the end of the world, and you still have plenty of options. Here are some things to consider if your vehicle has negative equity:

• Find out what you still owe after factoring in the trade-in price. If you have extra money in savings, then making up the difference of what you still owe can put you in a better buying spot.
• Roll over your current loan to a new loan. Rolling over your loan involves adding the amount you still owe onto the loan of your new vehicle. Keep in mind that this doesn’t mean your old loan goes away since you’ll be paying off your old loan and your current loan.
• Compare different trade-in offers. Do some research of other places in the Bridgeport area to see how many different trade-in offers you can get for your vehicle. Other third-party companies include Carvana and Carmax.
• Renegotiate with the original dealership. If you find out that you can get a higher offer on your vehicle but still have negative equity, then revisit the original dealership to see if you can negotiate the initial trade-in offer.

To get a great deal on your trade-in and learn other helpful car-buying tips, visit Mercedes-Benz of Charleston. We offer fantastic cash offers, and we’re flexible to negotiation.

Trade in Your Vehicle in Charleston

Now that you know how to trade in a car with payments, you’re ready to get the most out of your next trade-in. Contact us to set up a time to have your vehicle appraised and get any of your other car-buying questions answered, like how car financing works and more.