When it comes to looking at trade-in value for your used Hyundai model, you may be wondering if you can trade in your car even if you still owe money on it. Luckily, the answer is yes when you work with the team at MotorWorld Hyundai. Here at our dealership, our professional finance team makes it easy to trade in your car, whether or not you still owe money on your current vehicle.
Positive Equity vs. Negative Equity
Your route during a trade-in depends on the relationship between your car’s market value and your loan payoff amount. Positive equity occurs when your vehicle’s appraisal exceeds your loan balance. This scenario allows you to use the leftover funds as a down payment toward a new Hyundai car.
On the other hand, negative equity occurs when your remaining loan balance is higher than the car’s current market value. This is also called being underwater on your loan. Before you visit our dealership for a trade-in, identifying your equity position can help you make a smart financial decision.
How to Handle Your Remaining Loan Balance
If you decide to trade in a vehicle with negative equity, there are several ways you can complete the transaction smoothly. You can pay the difference out of pocket to clear the balance entirely or roll the remaining debt into your new vehicle’s financing agreement. On the other hand, you can apply available manufacturer incentives or buy a vehicle with a high cash-back offer to help offset the rolled-over debt.
Trade In Your Car in Wilkes-Barre, PA
Our team of finance specialists at MotorWorld Hyundai is here to help walk you through the trade-in process. You can even enter your trade-in directly on our website and receive an approximate value. Visit our dealership to get started!
