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One of the most common questions we get is: can I trade-in my car if it’s not paid off? The answer is yes! If you’re looking to upgrade to a new car, you may be wondering what to do with your old one. If you still have a loan outstanding on the car, you may be concerned about how to trade it in. Here is some information that can help.

Understand the Trade-in Process

When you trade in a car, the dealership will give you a trade-in value based on the car’s current market value. If you still owe money on the car, the trade-in value will be applied to your outstanding loan balance. You will then be responsible for paying any remaining balance on the loan.

Gather Your Car’s Information

When you’re ready to trade in your car, you’ll need to have some information handy. The dealership will need to know the make, model, year, and mileage of your car. You should also be prepared to provide a vehicle history report. This report will show any accidents or repairs that have been made to the car.

Research What Your Car is Worth

Before you trade in your car, it’s a good idea to do some research and find out what it’s worth. You can use online resources such as Kelly Blue Book or Edmunds to find out the trade-in value of your car. This will give you a better idea of what to expect when you trade it in.

Prepare to Negotiate

When you trade in your car, the dealership will likely try to offer you a lower trade-in value than what your car is actually worth. This is because they want to make a profit on the sale of your car. It’s important to be prepared to negotiate so that you can get the best possible trade-in value for your car.

Contact a Dealership or Auto Auction Company

When you’re ready to trade in your car, you can contact a dealership or auto auction company. Many dealerships will offer to buy your car even if you still owe money on it. And, if you’re looking to get the best possible trade-in value, an auto auction company may be your best option.

Whether you trade in your car or sell it privately, be sure to understand the process so that you can get the best possible deal.

Negotiate a Fair Price for Your Car

When you trade in your car, the dealership will likely try to offer you a lower trade-in value than what your car is actually worth. This is because they want to make a profit on the sale of your car. It’s important to be prepared to negotiate so that you can get the best possible trade-in value for your car.

Get the Paperwork in Order

When you trade in your car, you’ll need to sign over the title to the dealership. You should also have your loan payoff information handy. This will help the dealership process the trade-in quickly and efficiently.

Trading in a car that is not paid off can be a bit tricky. But, if you do your research and are prepared to negotiate, you can trade in your car and upgrade to a new one. Just be sure to understand the process and have all of the necessary paperwork in order.

Ultimately, trading-in a car that is not paid off is possible, but it requires a bit of extra work on your part. But if you’re up for it, it can be a great way to upgrade to a new vehicle without having to worry about an outstanding loan balance.