How do I trade in a car that I have not finished paying off?

If you have not finished paying off your car and want to trade it in, you have a few options:

  • Pay off the loan – Before trading in your car, you need to pay off the remaining balance of your car loan. This will give you a clear title to the car, which is required to trade it in.
  • Trade-in and roll over the debt – Some dealerships will allow you to trade in a car that you have not finished paying off and “roll over” the remaining debt into a new car loan. This can help simplify the financing process, but it may result in a higher monthly payment and interest rate on the new loan.
  • Sell the car privately – If you are unable to pay off the loan or trade in the car, you may consider selling the car privately. This will allow you to negotiate a price directly with the buyer, but it requires more effort and may take longer to sell the car.

Regardless of which option you choose, it is important to review your loan agreement and check with your lender to understand the terms and conditions of paying off or trading in a car with a remaining balance.