How to Trade in a Car That’s Not Paid Off

August 3rd, 2021 by

Tiny car with coins and finance paperwork

Can you trade in a car that’s not paid off? You can trade in a car even if it’s not paid off, but you’ll just need to remember that the existing amount on your vehicle’s loan won’t just disappear once you trade it in, and you’ll still need to pay off the existing balance. Learn how to trade in a car that’s not paid off with the finance center at Ocean Honda near Clearwater, and visit us for all of your car-buying questions.

How to Trade in a Car That’s Not Paid off Step by Step

If you have a car that’s not paid off that you’re wanting to trade in, then the process is quite similar to trading a paid off vehicle. To trade in a car that’s not paid off, follow these steps:

  1. Find out how much you still owe on your existing vehicle loan. You can usually find this by looking at your monthly statements or by contacting your lender.
  2. Value your trade at Ocean Honda to find out how much your vehicle is currently worth.
  3. Bring your vehicle to our dealership near Tampa, and we’ll inspect the vehicle for quality, damage, and other factors. Then, we’ll make you an offer.
  4. If the amount you still owe on the vehicle is less than our offer, then you can use the remaining amount towards a new car or pocket it for yourself. For example, if you still owe $9,000 and we offer you $10,000, then your loan will be paid off, and you’ll have $1,000 to put towards a new car.
  5. If the amount of your existing loan is more than our offer, then you’ll still owe money on your vehicle, which is known as negative equity.

If you still owe money on your car after your trade-in, then you can pay off the remaining amount before upgrading to a new vehicle for your Wesley Chapel commute, or you can roll over the remaining balance into your next auto loan.

Rolling Over a Loan

As mentioned above, if you still owe money on your vehicle after the trade-in, then you can pay off the remaining balance or roll over the balance into your next auto loan. Rolling over a loan means that you add the remaining amount of your existing loan on top of the new loan for your next vehicle. So, whether you decide to pay off the loan before getting a new vehicle or rolling over your current loan onto your next loan, you’ll have to pay off the original loan regardless.

Trade in Your Vehicle at Ocean Honda

Now that you know how to trade in a car that’s not paid off, you can take the next steps in getting your loan paid off and even having some money to put towards a new vehicle. Visit us in Port Richey or contact us to get the process started.

 

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