Can You Trade in a Car That is Not Paid Off?

Many Broomfield drivers want to trade in their vehicles to an auto dealership for either a different car or cash. While the trade-in process is pretty effortless when it’s already paid off, it is more complex if there is still a balance on the car loan. Here you can learn how to trade in a car that’s not paid off with our finance specialists. If you have questions, please contact us at Land Rover Flatirons. We are always happy to help.

Do You Have Positive or Negative Equity?

So, can you trade in a car that is not paid off? Yes, but your equity position will impact the complexity of the transaction. Check to see if you have positive or negative equity.

• Positive equity: Your vehicle is worth more than the remaining balance of your auto loan
• Negative equity: Your vehicle is worth less than the remaining balance of your auto loan

To determine which equity situation you’re in, you’ll need to know the remaining balance of your car loan and how much it’s worth. Remember that the trade-in value will vary by dealership. You have negative equity if the trade-in offer is less than what you owe on your loan. But, if you’re offered more than what you owe, you have positive equity.

If you have positive equity, you’re in an ideal position because the trade-in process will be more straightforward. You can trade in your current Land Rover to us at Land Rover Flatirons without owing any additional money and likely even have some cash to put toward your next new Land Rover! But, if you’re in a negative equity situation, you must decide what to do next.

Trading in a Car with Negative Equity

If you’re in a negative equity situation around Denver or Boulder, how do you trade in a car that’s not paid off? You have two options:

• Pay the difference between what you owe and the trade-in offer. This is the best option because it simplifies the process. But only some people in the Broomfield area have enough cash to do this.
• Transfer the remaining balance of your loan to your new loan. Transferring the remaining balance of your current loan to your new loan increases your monthly payment and means you’ll still be paying off a car you no longer drive. You’ll also be upside-down in your new vehicle. Still, if your current car payment is causing you stress, and you need a cheaper car, this could help.

Another unpopular option is waiting for a different car until you pay off the one you’re driving. No matter what you do, Land Rover Flatirons recommends reading the entire contract carefully before you sign it!

Trade-in Your Vehicle to Land Rover Flatirons Today

Now that you know how to trade in a car that’s not paid off, contact us to start the process. We offer many online tools that make trading in a car easier, such as our online credit application and monthly payment estimator. So, why wait? Get started now!