How To Trade in a Car That Is Not Paid Off

We offer a comprehensive selection of vehicles for you to explore. But before you upgrade, you may be on the fence because you still owe money on your vehicle loan. So, is it possible to trade in your car if it’s not paid off yet?

Yes! Our finance experts have worked with various shoppers all over Scarsdale trade in their vehicles that are still being financed. That means if you’re unsure how to trade in a car that’s not paid off, we can help! Discover the details on how to trade in a car you still owe today with the finance experts from Mercedes-Benz of White Plains!

How To Trade in a Car You Still Owe On – Equity

Before you upgrade your Purchase adventures by trading in your vehicle, you’ll want to know all about equity. One of the most important tips we give drivers is to understand the kind of equity they have with their vehicles.

Equity is simply the difference between your vehicle’s value and the amount of money you owe left on your auto loan. In most situations, our team of experts can help you roll over your equity to your new auto loan. Here are the two types of equity:

• Positive Equity: Positive equity is when your vehicle is worth more than you owe. If you roll over positive equity to another auto loan, it can be a down payment and potentially lower your monthly payment.
• Negative Equity: Negative equity is when your vehicle is worth less than what you owe. You can often still roll over negative equity, but it could increase your monthly payment.

How To Trade in a Car You Still Owe On – The Process

After you understand your vehicle equity, you can simply utilize our trade-in tool from the comfort of your own Armonk home for the next steps. We’ll essentially value your vehicle’s price online, schedule an appointment for you to come in, and then confirm your vehicle’s value.

Once we’ve come upon an agreed price for your vehicle’s value, we’ll go over your options regarding equity. As we mentioned, positive equity can simply roll over to your auto loan to decrease your monthly payment. However, you have two options when it comes to negative equity:

• Roll Over: Similar to positive equity, you can also roll over negative equity. We’ll essentially transfer the loan balance over to your new auto loan after your vehicle’s value has been subtracted. This may increase your monthly payment, but the benefit is that you won’t have to worry about the vehicle you’re trading in anymore.
• Pay the Difference: The other option you have is to simply pay the difference. By doing so, you won’t have to roll over your vehicle loan at all. While we understand you may not have the extra funds to do this, doing so can help you in the long run as you’re not paying a higher monthly payment.

Start the Trade-In Process With Mercedes-Benz of White Plains!

No matter your situation, we can help you with your vehicle trade-in at our White Plains dealer. Get in touch with us today to start the trade-in process!