How to Trade In a Car That is Not Paid Off


Toy car next to car keys

Trading in your car is a smart way to save on the cost of a new Lincoln-but can you still do it if your current loan isn't yet paid off? For many buyers in the Macon area, the answer is yes! To learn more about how to trade in a car you still owe on and to determine whether this could be the right path for you, read this guide from Five Star Lincoln Warner Robins.

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Do You Have Positive or Negative Equity? 

Equity is a key factor that determines whether you can trade in a car you still owe money on. Equity describes your assets and their value; in this context, it concerns the current value of your vehicle compared to the amount that you owe on it:

  • Positive equity: your car is worth more than what you still owe
  • Negative equity: your car is worth less than what you still owe 


If your car is worth more than what you owe, you stand to profit when you sell the car. That prospective profit is positive equity. The opposite is true if your car is worth less than what you still owe; in this case, selling your car will result in a net loss.

If you have positive equity, trading in your car will be a simple process! Things get a little more complicated if you have negative equity-but trading in is likely still possible. Our team of finance experts can sit down with you to discuss how to trade in a car that is not paid off in a way that meets your needs.

Trading in a Car with Negative Equity

If you're learning how to trade in a car that is not paid off, there's certainly more of a learning curve! We're happy to help you compare your options. If you do decide to trade in your car regardless of your loan equity, there are several ways to accomplish this:

  • Make up the difference out-of-pocket: If you can afford it, simply trading in your car and then paying the difference between its value and what you owe on the loan is the best choice for your future finances. 
  • Roll over the loan: A loan rollover bundles the amount owned on your old loan into your new loan. This way, you'll be able to avoid a large upfront payment-but it does come with risks. The higher monthly payment amount may be more difficult to keep up with unless you're opting for a more budget-friendly vehicle this time around.

Learn More About Trading In Your Car at Five Star Lincoln Warner Robins 

If you have questions about how to trade in a car you still owe on, don't hesitate to give us a call or visit our finance center in Warner Robins. If you're ready for the next steps right now, we make it easy to do so from home in Macon or Dublin: apply for financing and estimate your credit score with our online tools today!