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

Plenty of drivers around Dallas and beyond are familiar with trading in a vehicle to dealerships such as Bob Moore Auto Group, and the benefits of putting the cost toward a new vehicle or money in their pocket. But not so many drivers know how to trade in a car you still owe on, and whether it’s a good idea or not to do so. The trade-in process is pretty straightforward, especially when the vehicle is paid completely off, but the process is a bit more involved if your vehicle is not yet paid off. But that is where the finance department at Bob Moore Auto Group comes in. We’ll help explain all of the details about the car trade-in process, and help you decide whether keeping your car or trading it in is right for you. Contact us today with any questions that you might still have. 

Determine: Positive or Negative Equity? 

To see whether or not you qualify to trade in a car that isn’t paid off, you’ll first want to determine which of these two situations applies to you and your vehicle:

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

To calculate which type of equity applies to you, you’ll need to know how much you still owe on your current vehicle, how much the car is worth according to a pricing source like Kelley Blue Book, and how much you’re getting from trade-in offers. If the offer for your trade-in is less than the amount you owe, then it is negative equity you’re dealing with or if it’s the other way around, then it is positive equity. Positive equity puts you in the most ideal position. The trade-in process will likely be rather easy. You’ll be able to turn in your current Edmond commuter without any owed amount left over, and may even end up with some extra cash to put toward your next car!

Trading in a Car with Negative Equity

For drivers who are dealing with negative vehicle equity, there are several options when it comes to trading in a vehicle. Our finance team would be happy to explore any of these options, in order to find the one that works best for you:

• Make up the difference you still owe after accounting for the trade-in price.
• Another option is to transfer the amount you still owe over to a new loan. 
• If those two options aren’t for you, then you should work with a third party and see how the trade-in offers compare to the ones you have gotten from your local dealerships. 
• If you still have negative equity with a higher appraisal value, then negotiate with the initial dealership you went to. 

Trade in Your Vehicle Today at Bob Moore Auto Group

Got any questions? Ready to trade in? Still trying to find that new car special to get the most bang for your buck? Then, let our team help you no matter what option you’re looking for. We’ll make it easy for you to find the model that works for you and get you back on the road to Tulsa today.