If you are planning on upgrading to an exciting new Honda car, truck, or SUV but still owe money on your current car, you may be wondering how to trade in a car that is not paid off. While it is possible to trade in a car you’re still paying on, you need to remember that you will still be on the hook to pay off the existing balance. Learn more about how to trade in a car you still owe in this guide from the finance experts at Honda Mall of Georgia, then visit our dealership in Buford to get the best deal possible on your trade-in today!
Steps on How to Trade in a Car That is Not Paid Off
Not sure how to trade in a car that you still owe on? The process is essentially the same as trading in a vehicle that is fully paid for. To trade in a car that’s not paid off, follow these steps:
- Check your monthly payments or contact your lender to find out exactly how much you still owe on your existing vehicle loan.
- Use the Value Your Trade tool available online from Honda Mall of Georgia to get a quick estimate on how much your vehicle is currently worth.
- Bring your vehicle to our dealership near Atlanta, to have it inspected and appraised.
- Based on our appraisal, we’ll make you an offer. If the amount you still owe on the vehicle is less than our offer, then you can apply the remaining amount towards a new car. 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 the purchase of your new car.
- If the amount of your existing loan is more than our offer, you’ll still owe money on your vehicle. This is known as negative equity. You can pay off the remaining amount before upgrading to a new vehicle for your Lawrenceville commute, or you can roll over the remaining balance into your next auto loan.
Rolling Over a Loan
As noted above, if you still owe money on your vehicle after the trade-in, then you can either pay off the remaining balance or roll it over to your new loan. What does it mean to roll over a loan? When you roll over a loan you are adding the remaining amount of your existing loan payments to the new loan for your next vehicle. This folds in what you owe on your old car with your new loan payments.
Trade-in Your Vehicle Today at Honda Mall of Georgia!
Now that you know how to trade in a car you still owe on, head on down to Honda Mall of Georgia. We’ll offer you the fair market trade-in value for your vehicle which you can in turn apply to the purchase of a brand new Honda. Just make sure to explore our current new Honda specials to find some of the best deals in the Sugar Hill area, then apply for financing with us online to get pre-approved from the comfort of your home or office. Whether you wish to trade-in or sell your car, you’ll find that we make the process quick, easy, and hassle-free. Please feel free to reach out to us if you have any questions or would like more information.
