How to Trade in a Car That is Not Paid Off

Excited Couple Reviewing Trade in Offer with Salesman


Does your current vehicle no longer suit you? You may be thinking about trading it in around Manchester. What happens if there is still an outstanding balance on your car loan? You may be wondering how to trade in a car you still owe on. The finance experts at Tulley BMW of Nashua are here to help. In the guide below, our team discusses how to trade in a car that is not paid off so you can decide whether this option is right for you. 

Positive or Negative Equity 

Before you learn how to trade in a car that’s not paid off, you will have to first need to find out if you have positive or negative equity: 

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

Try using our trade-in tool to see how much your car is worth. If the value of the vehicle is less than the balance left on the loan, then it is negative equity. If the value is more than what is left on the loan, it is considered positive equity. 

If you have positive equity, the trade in process should still be fairly simple. You will trade in the car without owing anything, and the amount leftover can be put toward your next car from us.

If you have negative equity, you do still have a few options to consider. 

How to Trade in a Car You Still Owe on with Negative Equity 

  • Make up the difference you still owe after accounting for the trade-in price. This is the best option to choose if possible. While not everyone will have enough spare cash to do this, it is an excellent option if that money is available to you. 
  • Transfer the amount you still owe over to a new loan. You can also roll over the amount you owe into your next vehicle loan. Keep in mind that this increases the monthly payment and that you will still be paying for a car you no longer have. If you are not able to make your current car payments and you are downsizing with a cheaper car, this option may be worth considering. 

Trade in Your Vehicle at Tulley BMW of Nashua

Now that you know how to trade in a car that’s not paid off, you can begin the process today at Tulley BMW of Nashua. We would be more than happy to help drivers from Lowell, MA and Westford find a vehicle that better meets their needs for an affordable price. Contact us for more information.

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