How to Trade in a Car That is Not Paid Off

We gladly accept trade-ins for quality vehicles for drivers who want to upgrade their San Leandro ride. You could even sell your vehicle to us whether you buy one from us or not in Oakland. But, do you know how to trade in a car that is not paid off? It is possible, even though it’s not something we see as often as a straight trade-in without owing money on a loan.

Learn how to trade in a car you still owe on from the team at One Toyota of Oakland. Our finance team can handle the details after you find the perfect car from our inventory. 

How to Trade in a Car That Is Not Paid Off: Positive or Negative Equity 

First things first. Before you learn how to trade in a car you still owe on, determine what kind of equity you have on your current auto loan. 

• Positive Equity: This is when your car is worth more than what you still owe on the loan. This is an easier way to get an upgraded vehicle after you know how to trade in a car that is not paid off. 
• Negative Equity: Occurs when your car is worth less than what you still owe. Although not ideal, you can still trade in your vehicle in these situations.

Calculate which equity you have by finding out how much you still owe on your current vehicle. Then, look at the value of your model according to Kelley Blue Book® values. Then, see what you can get from any trade-in offers. Negative equity occurs if the offer is less than the amount you owe on the loan. Positive equity means the offer is worth more than what is left on your auto loan.

As we mentioned, positive equity is better for your trade-in process around Hayward. Negative equity is a bit harder, but still doable as you learn how to trade in a car that is not paid off. 

How to Trade In a Car You Still Owe On? 

Now, we show you how to trade in a car you still owe for your situation in Alameda and beyond. Follow these simple steps:

• Make Up The Difference You Still Owe After Accounting For The Trade-in Price: This is the best option to consider because you can improve your credit score by doing this. If you can wait a bit to pay off the loan before getting another vehicle, you’ll be in a better financial position when you pay off the original loan.
• Transfer The Amount You Still Owe to a New Loan: Most people choose this option when they have negative equity and want to trade in their current vehicle that’s not paid off. The downside is that your new auto loan payment might be larger than your current loan. You’ll also need to check with your current auto loan provider to see if you can do this.

Learn More About the Trade-in Process at One Toyota of Oakland!

Are you ready to trade in your current vehicle for something newer? Contact us or call 510-877-7989 to talk to our finance team or to test-drive our new or used vehicles. We’re happy to help in any way we can.