How to Trade in a Car That is Not Paid Off?

Woman with Laptop at Restaurant


How do you trade-in a vehicle that you owe money on? Many East Wenatchee drivers can trade in vehicles new to them for cash. When the trade-in process is pretty straightforward when your vehicle is paid off, the process is different if your loan balance is negative. Learn how to trade in a car that is not paid off with our finance team at Sangster Motors, and apply for financing if you want a head start on your auto loans. 



Do You Have Positive or Negative Equity? 

When you trade-in a vehicle that still has a payoff amount left on it, you have to determine whether you are in:

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

Basically, If the offer is less than the amount you owe, then it is negative equity. However, if it is more than how much you still owe, then it is positive. 

Trading in a Car with Negative Equity

When you check out our vehicles with negative equity, you can trade-in your vehicle even still. Learn more about car purchases with negative equity below: 

  • Make up the difference you still owe after accounting for the trade-in price. This option is perfect when you are looking to change your situation for the better. 
  • Another option is to transfer the amount you still owe over to a new loan. Most Leavenworth drivers choose this option when they have negative equity and want to trade in their current vehicle that is not paid off. This can increase your monthly payments and you still will be paying for a vehicle that is traded in. 
  • If you still have negative equity with a higher appraisal value, then negotiate with the initial dealership you went to. Provide the dealer with any offers you get from third parties and ask the dealer for a value of the difference you still own. That way you can sell your vehicle to a third-party dealer while still having the difference transferred to your new loan.

Learn More About the Trade-in Process with Sangster Motors 

If you still have questions about trading in your car that’s not paid off, reach out to us at Sangster Motors near Wenatchee, WA for more information.

More from Sangster Motors

  • 2024 GMC Sierra 1500 Interior

      The new Sierra 1500 is a remarkable pickup truck that has a lot to offer Wenatchee drivers, including a stylish and well-equipped interior. Whether you’re commuting to work, running errands, or towing a heavy load, the inside of this truck has everything you need to make your journey comfortable and enjoyable. The 2024 GMC…

  • 2024 GMC Sierra 2500 Interior

      The GMC Sierra 2500 has been a perennial favorite with East Wenatchee and Levanworth shoppers for its robust performance capabilities and reliability, but the 2024 GMC Sierra 2500 interior is also more than deserving of your attention. Designed with comfort, convenience, and style in mind, no detail has been missed. In the guide below from…

  • 2024 Hummer EV SUV Price By Trim Level

      We’ve been talking about the return on the Hummer as an electric vehicle to East Wenatchee and Levanworth streets for awhile, and now it’s almost time for dealerships like Sangster Motors to start taking delivery on this stunning new SUV. Now we have the 2024 Hummer EV SUV prices and trim levels for you. The electric…

Sangster Motors 47.4338, -120.3237.