How To Trade In A Car That’s Not Paid Off?

Excited Couple Reviewing Trade in Offer with Salesman


Trading in a car is an easy way to get rid of your current, old car for some extra cash to use towards a new-to-you vehicle in the Richmond area. But how would you go about trading in a car that has an outstanding loan? Our finance team at Short Redmond SuperStore can guide you through the steps on how to trade in a car that’s not paid off. Find out below.



Find Out If You Have Positive or Negative Equity

Before you can learn how to trade in a car that’s not paid off, you have to figure out if you have positive or negative equity. Calculate which equity you have with the amount of current loan on the vehicle, car’s current worth according to Kelley Blue Book® values, and trade-in offers. If the offer is less than the amount you owe, then you have negative equity. However, if it is more than how much you still owe, then you have positive equity.

Trading in a car with positive equity of your loan is still easy since you will be able to pay off the rest of the loan and still have some money left from the trade-in. However, if you have negative equity, you will need to continue reading to find out what options you have to choose from.

How To Trade In A Vehicle That’s Not Paid Off With Negative Equity

Drivers with negative equity near Winchester will need to consider the following options:

  • Pay what you still owe after the trade-in value in full. If you have the money to do this, this is your best option as you will no longer have an outstanding balance and you can move on a different car without worrying about a loan from a previous one.
  • Roll over the old loan to your new loan. This is a popular choice, but it will increase your monthly payments, which might be difficult for you to keep up. Depending on what you are trying to achieve with this route, this might be the best option for you. Usually, any downgrades with this option are ideal.
  • Work with a third party for a better trade-in offer. Check out how much third-party used car companies, such as Carvana and Carmax, are offering you since they tend to appraise cars at higher prices. This can instantly put you in a better position from having negative to positive equity.
  • Negotiate with the initial dealership with the higher offer from the third party. If you still have negative equity even with the higher offer from the third party, chat with the initial dealership and ask them to match the offer. While this won’t change your situation completely, you can still get more money for your trade-in.

Trade In Your Car to Short Redmond SuperStore

At Short Redmond SuperStore, we are a used car dealer, so we have plenty of experience with pre-owned vehicles and can help you trade in your car successfully. Contact us with any questions and we will be more than happy to answer them.


More from Short Redmond SuperStore

  • 2024 Chevrolet Silverado 1500 Towing Capacity

      The 2024 Chevrolet Silverado 1500 robust and reliable towing capacity has emerged as a formidable choice for drivers in Richmond. This remarkable capability allows for a seamless transition from being a workhorse at jobsites in Winchester to a stylish family vehicle—or even a cherished companion to weekend adventurers. With the ability to tow work…

  • Chevrolet Silverado 1500 Configurations

    The Chevy Silverado 1500 doesn’t need further introduction. If you’re looking to upgrade your pickup in Richmond, you can’t go wrong with a model from this lineup! While there are several Chevrolet Silverado 1500 configurations to choose from already, there is a recent addition: the high-performing Silverado ZR2 that can handle rock-crawling. Discover all of…

  • Ford F-150 Trim Levels

    When it comes to a durable light-duty pickup truck, the Ford F-150 is a popular choice thanks to its several trim options. It even holds up to other well-known models like the RAM 1500 and Chevy Silverado 1500 for its affordability and versatility. Whether you want something for work or you want a vehicle to…

Short Redmond SuperStore 38.0316988, -84.4519436.