How To Trade in a Car That Is Not Paid Off

When you’re looking to upgrade your St Louis commute, you’re likely already aware that trading in your vehicle can allow you to enjoy a lower monthly payment if your vehicle is paid off. But, is it possible to trade in a car that’s not paid off? Yes, you can trade in a car that’s not paid off but there are some nuances that you should be aware of. Luckily, our finance experts at BMW of West St Louis have the expertise to ensure that you’re fully aware of your options when it comes to vehicle trade-ins. Learn how to trade in a car you still owe on today with our team!

Trade-In Equity & How It Works

Before we touch on how to trade in a car you still owe on, you’ll want to understand how equity works. If your vehicle is completely paid off, there’s no need to worry about equity. However, if you still owe money on your vehicle, it’s important that you know if you’re in a positive or negative equity situation. Equity is simply the difference between your vehicle’s trade-in value and the amount of money you owe left on your loan. Here’s the difference between positive and negative equity:

• Positive Equity: Your vehicle is worth more than the amount of money you owe. Positive equity situations typically mean that you’ll be able to use the leftover money after your current loan is paid off and apply it directly to your new vehicle loan.
• Negative Equity: Your vehicle is worth less than the amount of money you owe. You may be able to roll over that negative equity to a new vehicle loan but it all depends on your situation.

Regardless of what equity situation you’re in, our experts can assist so don’t hesitate to stop by in Manchester if you’re ready for the next steps.

How To Trade in a Car You Still Owe On

Now that we’ve talked about equity, let’s take a look at some options you’ve got if you have negative equity and you want to trade in your vehicle for a new one that better fits your Ballwin lifestyle:

• Pay Off Your Loan: If you’re able to, you can simply pay off the rest of the money due on your loan after you trade it in. Doing so will allow you to have a fresh start when you get a new vehicle loan.
• Roll Over the Equity: Depending on your specific situation, you may be able to roll over the equity into your new vehicle loan. Just keep in mind that this may end up increasing your monthly vehicle payment.
• Get Multiple Trade Offers: Shop around and determine where you can go to get the most for your vehicle trade-in. If you’re not happy with your trade-in offer, let our team know and we’ll work with you so that you don’t have to waste your time driving all around Ladue.

Get the Most for Your Ride at BMW of West St Louis!

If you’re planning on trading in your vehicle and you want the most money for your ride, head to BMW of West St Louis today! We can help you evaluate your trade-in offer and go over your equity situation. Let us know if you have any questions