How to Trade In a Car That Is Not Paid Off

For one reason or another, you may feel like it’s time for you to part ways with your vehicle and drive another model. However, if your current set of wheels isn’t paid off, you’ll face some different steps and options than with the usual trade-in process.

To make sure the process goes as smoothly as possible, Andy Mohr Automotive has put together this guide on how to trade in a car that is not paid off. We’ll make sure that you’re ready to drive around Indianapolis, Plainfield, and Bloomington, IN, in the model of your choice!

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Trading Your Car

Trading in a vehicle is a common way for drivers to get rid of their vehicle as they purchase their next ride. You’ll simply choose your next model out of our inventory, while we evaluate your vehicle to determine its value.

When a vehicle is fully paid off, you can use that value to help you pay for the next purchase. Since your model isn’t fully paid off, the process will be a little different. However, you do have a couple of options.

Firstly, your options will vary depending on how much you still owe on the vehicle. If the vehicle is worth more than what you owe, you’ll have positive equity. This means that the trade will at least cover all of what you own, so you can trade in your vehicle the usual way.

On the other hand, the amount that you owe might be more than what your vehicle is currently worth, meaning you have negative equity. If this is the case, you’ll still be able to trade it in—you’ll just have to choose a plan that works for you.

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Your Trade Options

When you owe more than what your vehicle is worth, you’ll get the money for your vehicle’s value and have to decide what to do about the difference. This leaves you with two main options:

• Pay the difference
• Add the difference to your new loan

Paying the difference might work for you, if the difference is small. However, if you can’t cover it with cash, you can add the difference to the auto loan you were already going to get for your next purchase. As you apply for financing, you’ll essentially roll over what you owe. One of our team members will craft a payment plan for you, with that included.

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