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

  • Why the 2024 Tonale is Alfa Romeo’s Most Anticipated Release Yet

    Do you want a car that offers dynamic performance? Do you want one that has excellent and reputable safety features? If so, then look no further than the 2024 Alfa Romeo Tonale.  A stunner in its own right, this vehicle has so much to offer the residents of Macomb. Keep reading to learn more about…

  • The 2024 Stelvio: Alfa Romeo’s Answer to the Perfect SUV

    In terms of luxury SUVs currently on the market, there’s nothing quite like the Alfa Romeo Stelvio.  A pinnacle of design and dynamic performance, the Alfa Romeo Stelvio stands in a league of its own for stylish and award-winning SUVs. That’s no joke, either! The Alfa Romeo Stelvio is the recipient of J.D. Power’s Top…

  • The 2024 Alfa Romeo Giulia: Balancing Speed and Style

    Do you want to drive in luxury? Do you want to make your neighbors jealous? When you drive around in the stunning Alfa Romeo Giulia, you will.  This style icon is beautifully designed with you in mind. From every seat stitch to the technological advancements only known from an Alfa Romeo brand, the Giulia will…