How to Trade-In a Car That is Not Paid Off

When you want to trade in a vehicle that is completely paid off, the process is relatively straightforward. But, what if you want to move a little faster than that? Finding out how to trade in a car you still owe on might take a few more steps, but Edwards Kia is here to help. Learn how to trade in a car that is not paid off with us, and get more finance tips and tricks with our experts.

Do You Have Positive or Negative Equity?

The first thing to figure out is whether you have positive or negative equity. This will determine your options moving forward. So, how do you know if you have positive or negative equity? Use our Value Your Trade calculator or find the Kelley Blue Book® value of your vehicle. Then, compare this value to how much you still owe on your car.

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

If you have positive equity, you can just trade in your car without an issue. Because your car has more value than debt, you won’t owe anything extra – and you might even get money to use toward your new car! Negative equity is more complicated, and we’ll get into that next.

How To Trade in a Car You Still Owe On with Negative Equity

Let’s say you have a car with negative equity in La Vista, NE, but you’d like to trade it in. What are your options?

• Make up the difference you still owe after accounting for the trade-in price. If you have the financial means to do this, it’s the best choice. It is the quickest and easiest way to get rid of your negative equity issue. However, not everyone has the extra funding to do this.
• Another option is to transfer the amount you still owe over to a new loan. The alternative is to combine your old and new loans into one monthly payment. This means you’ll likely be upside down in your loan immediately, but if you are downsizing to a cheaper car, it can be a good option.

Explore Your Financing Options at Edwards Kia

We’ve gone through the basics of how to trade in a car that is not paid off, but if you have questions, our finance team is ready to help. Get customized financial advice for your needs and budget at Edwards Kia, and stop by our Council Bluffs dealership to chat in person. You can also contact us with any questions at any time.