How to Trade in a Car That is Not Paid Off

Car dealer giving car key to buyer

Can you trade in a car with a loan? Many Newark drivers have found themselves ready to move on to a new car while they still owe money on their old one, and therefore wondering how to trade in a car that is not paid off. Actually, it’s easier than you might think. The experts in our finance center are here to help, so let’s talk about how to trade in a car you still owe on.

How to Trade in a Car That’s Not Paid Off – When It’s Worth More Than You Owe

Trade-in values have never been higher due to the high demand for cars, both new and used. So it’s very likely you owe less on the car than what it’s worth. Here’s how to trade in a car you owe money on in this case: Suppose you owe $4,000 on your old car, but it is worth $5,000. The dealer will pay what is still owed on your old loan and apply the remaining $1,000 towards your down payment for your new car. But how does it work when you owe more than what the car is worth? Can you trade in a car with a loan when you have negative equity?

How to Trade in a Car That’s Not Paid Off – When It’s Worth Less Than You Owe

What are your options if you owe more than what the car is worth? Can you trade in a car with a loan in that case? Yes, we’ve helped many Staten Island customers do just that. Here’s how to trade in a car that you still owe on if you have negative equity: suppose you owe $4,000 on your old car, but it’s only worth only $3,000. Either you pay that $1,000 difference before buying the new car, or the dealer takes over your old loan and adds that $1,000 to what you’ll owe for your new car.

How to Trade in a Car You Owe Money On in 3 Steps

It’s not that hard to trade in a car that isn’t yet paid off. As we’ve shown above, it’s pretty easy. Here are the steps to trading in a financed car:

  • Determine how much you still owe on your current auto loan.
  • Calculate the trade-in value of your car with our online tool.
  • If you owe more than the trade-in value, determine whether you can pay off that difference, or you need to ask us to roll that difference over to your new loan. If you owe less on your car than the trade-in value, just bring it in and pick out your new car.

Let Hudson Nissan of Jersey City Buy Your Car

Did you know we’ll buy your car even if you don’t buy one of ours? We work hard to offer the fairest prices possible. So, bring your car in and let us take a look at it. And, if you found this guide to be helpful, you might also check out our posts on car lease buyouts and whether a dealership can order a car for you. Remember, we’re just down the road from Bayonne, and we’re here to help. So, drop by or contact us today!


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