How to Trade in a Car You Still Owe On

October 27th, 2022 by

Finance Agreement
Sometimes Macomb drivers need to trade in a car that’s not yet paid off. If your lifestyle has changed and you need to trade in your financed vehicle, don’t worry. While the trade-in process is easier when your car is completely paid off, the process is a little more complex if you still owe money on your vehicle. Here Genesis Alfa Romeo explains how to trade in a car you still owe on, and feel free to contact us if you have any questions.

Do You Have Positive or Negative Equity?

The process of trading in a car you still owe money on to a Utica dealership begins with finding out your equity position.

  • Positive equity: Your car’s value is higher than the amount you still owe
  • Negative equity: Your car’s value is lower than the amount you still owe

To learn which equity position you are in, you need to know how much you still owe on your current auto loan by calling your current lender or checking a recent statement. Then, use Kelley Blue Book® values,, or the Genesis Alfa Romeo value your trade-in tool to get an estimated value of your current vehicle. You are in a negative equity situation if the value is less than the amount you owe. But, if it is more than what you still owe, you have positive equity.

Positive equity is the best position because the trade-in process is easier, and you won’t have to figure out how to pay off the remaining balance left over after you trade in your car. Plus, you can use the extra funds as a down payment toward your next car! However, if you’re in a negative equity situation, you’ll have to consider your options below to see how to proceed.

Trading in a Car with Negative Equity

There are several options for those Sterling Heights drivers with negative equity:

  • Pay the difference you still owe after accounting for your trade-in price. If you have enough money in savings, the best-case scenario is just to pay off the remaining balance. Unfortunately, some drivers around Clinton Township don’t have enough cash available to do this.
  • Transfer the remaining balance over to a new loan. Most dealerships in Macomb will allow you to add the amount left over from the trade-in to your new car loan. However, doing so will increase your monthly payment, and you will still be paying off your old car along with the new one. Still, if you can’t keep up with your current payments on your vehicle and need a cheaper car, this is a viable option.
  • Wait to get a new car until you pay off your existing one. If the situation isn’t urgent, delaying a new car purchase until you pay off your existing loan may be your best option.

Experience a No-Hassle Trade-in at Genesis Alfa Romeo

Now that you know how to trade in a car you still owe on, feel free to reach out to our finance experts at Genesis Alfa Romeo to get the trade-in process started. You can also begin by completing a finance application. Check out our pre-owned vehicle specials and incentives, and contact us today!

More from Genesis Alfa Romeo

  • 2024 Alfa Romeo Giulia Exterior Accessories

    Discover the exceptional Alfa Romeo Giulia, a sedan renowned for its superb performance and stunning aesthetics, making it ideal for cruising through Macomb. Experience luxury with the Alfa Romeo Giulia exterior accessories and high-quality interior, elevating its impressive capabilities. Let us help personalize your vehicle to suit your style and preferences. Discover our expert service…

  • 2024 Alfa Romeo Tonale Engine Specs

    Alfa Romeo dips into the electric market with its newest model, the Alfa Romeo Tonale. A new subcompact crossover exuding Italian luxury, the Alfa Romeo Tonale merges its classic engine performance with an innovative electric motor and battery system to create this unique plug-in hybrid. So, what kind of performance can you expect the first…

  • Redefining Excellence: The Luxurious, Powerful, and Fast 2024 Alfa Romeo Giulia

      The 2024 Alfa Romeo Giulia is a breathtaking fusion of Italian craftsmanship, exhilarating performance, and unparalleled luxury. The Giulia stands as a testament to Alfa Romeo’s legacy of creating cars that combine heart-pounding power with elegant design.    At Genesis Alfa Romeo, we’re proud to introduce the 2024 Alfa Romeo Giulia, a car redefining…