How Do You Trade In a Car You Haven’t Paid Off?

August 7th, 2018 by

Couple getting car keys

New Vehicle Specials

When you purchased your last new Honda or used vehicle Portsmouth or Rochester, did you use automotive financing? If you did, then you might be still paying off the loan.  If you’ve been thinking about getting another vehicle, you might be wondering what your options are if you still have an automotive loan.

Can You Trade In a Car You Still Owe Money On?

Yes, you can. These are the steps you’ll want to take to trade in your currently vehicle to Dover Honda and purchase a new, used, or certified pre-owned vehicle.

  • Find Out How Much You Owe: The first step is to find out how much you still owe on your current vehicle. You simply need to contact the financial institute that services your loan to ask what the payoff balance is, which is the remainder of your loan plus any fees or interest.
  • Compare How Much You Owe to the Trade in Value: Once you know how much you owe for your payoff balance, you’ll want to see what your currently vehicle is worth for a trade in. You can use our trade-in tool or check with a reputable source like Kelley Blue Book or Edmunds. The goal is to have your trade in value be as close as possible to the payoff balance.
  • Bring Your Car to the Dealership: When you’re ready to trade it in, bring your current vehicle, as well as your driver’s license, registration, insurance card, and all vehicle to into the dealership when you’re ready to trade it in. You likely won’t have the title since it currently belongs to your loan lender, so bring in all of your loan information. The dealership will contact the lender to assume the loan.
Car Salesman Speaking with Couple
2019 Honda Ridgeline

Using Your Vehicle Trade In

If your vehicle is worth more than the payoff balance, you’ll receive a credit for the difference that can be applied to your next car.

If the trade-in value is less than your payoff balance, you’ll be responsible for making up the difference. One option is to roll that amount owed into your next automotive loan when you apply for financing in Dover.

 

 

More from Dover Honda

  • 2019 Honda CR-V Interior

    Anyone can see that the Honda CR-V looks sleek and stylish from the outside, but what lies within the 2019 Honda CR-V interior? You’ll be blown away by the roomy design, high-tech features, and premium amenities onboard the latest model. Check out our favorite features within the Honda CR-V interior below and schedule your test…

  • Honda Civic Safety Rating

    The Honda Civic has a tradition of providing Portsmouth drivers with safety and reliability, and the 2019 Honda Civic continues that tradition. Check out the Honda Civic safety ratings and features at Dover Honda, then take the trip to our dealership to check out the new Honda Civic models we have! NHTSA Safety Ratings for the…

  • 2019 Honda Pilot MPG

    Honda has a reputation for making efficient and reliable vehicles, and the 2019 Honda Pilot follows suit. The Pilot earns a fuel efficient mpg that differs depending on the drivetrain you choose. Combining fuel efficiency with a gas tank that holds 19.5 gallons, means fewer stops at gas stations and more time on the Rochester…