How Do You Trade in a Car That's Not Paid Off?

Finance Agreement


At Lum's GMC, we don’t care what your reasoning might be for wanting to upgrade to a new ride in Salem, but you might still have questions such as how soon can you trade in a financed car or if it’s even possible for you to trade in a financed car. The finance department at Lum's GMC is here to help you learn how to trade in a car that’s not paid off yet, so that you can upgrade to a new model and enjoy all the latest in technology today. To get started, continue reading down below, or contact us today. 

Positive or Negative Equity: What Does It Mean?

There isn’t really a time limit as to how soon you can trade in a financed car, but you do need to know its equity. The first thing to think about when you are about to sell your car is to determine if you have positive or negative equity. But, what does that mean exactly?

  • Positive equity: Your vehicle is worth more than your current loan amount.
  • Negative equity: Your vehicle is worth less than your current loan amount.

To figure out whether you have positive or negative equity, you’ll need to determine how much you currently owe on your car loan. Once you’ve done that, you can use our trade-in value tool to discover how much your car is worth. If the loan amount is less than your trade in value, then you have positive equity and vice versa. This is the most ideal situation, as it makes it simple for you to sell your car and use the excess profits toward your down payment. If you have negative equity, then you can still sell your car to a dealer, you just need to carefully consider your options. Don’t worry, if you have negative equity, Lum's GMC can help you upgrade your commute from Newberg to Hillsboro. 

Procedures to Trade In A Vehicle That’s Not Paid Off With Negative Equity

If you have negative equity, learn how to trade in a car that’s not paid off here:

  • Negotiate: After you explore what kind of vehicle you want, you can return to your preferred dealer ready to negotiate. Bring along any offers you received to barter for a better deal.
  • Rollover your current loan. Rolling over a loan is an extremely common practice for drivers looking to make an upgrade. You can work with your lender, whether that is a bank or a current loan with us, to transfer the balance of your current loan to your new one. By doing this, you can pay off the old loan and the new one simultaneously, while also enjoying a new ride.
  • Pay off the difference. We know that this may not be the ideal case, but this practice is great for making a fresh start on an auto loan. If you can afford it, paying off the remaining balance on your auto loan after the sale is ideal.
  • Explore third-party options. If you’re unsatisfied with the trade offer you received, you can turn to the open market. Visit other dealers and get trade quotes. From there, you can select the best option!

Let Lum's GMC Help You Today Find Out if You Can Trade in a Financed Car

If you’re looking for more personal advice on how to trade in a car that’s not paid off, you can contact our team at your convenience to find out how soon you can trade in a financed car. You don’t have to wait long to find out if you can trade in a financed car or not. You can also find out how do dealerships determine trade-in value

More from Lum's GMC

  • 2023 GMC Sierra 1500

    2023 GMC Sierra 1500 Trim Levels Looking for a light-duty pickup truck that offers Yamhill County drivers with best in class diesel horsepower and torque, while also being the most luxurious in its class? Then it sounds like you’re looking for a 2023 GMC Sierra from Lum’s GMC in McMinnville. The GMC Sierra 1500 comes…

  • Chevrolet Service at Lum’s GMC

    History of Chevrolet and GMC General Motors was founded in 1908, and would go on to merge with Chevrolet Motor Company in 1918. General Motors still owns Chevrolet to this day and doesn’t seem to be going anywhere, anytime soon.  Chevrolet offers vehicles from trucks to SUVs and Subcompact cars. GMC only offers SUVs and…

  • 2022 GMC 3500 Towing Capacity

      The new GMC Sierra HD is getting pretty popular around Salem job sites. That’s likely due to the impressive GMC 3500 towing capacity. How much can a GMC Sierra 3500 tow? The 3500 is capable of towing an unbelievable 36,000 pounds when equipped with a diesel engine and a fifth-wheel, and 16,530 pounds with…

Our Hours

Sales Hours:
  • Mon - Sat9:00 AM - 6:00 PM
  • Sun10:00 AM - 5:00 PM
Service Hours:
  • Mon - Fri7:30 AM - 5:30 PM
  • Sat8:00 AM - 5:00 PM
  • SunClosed
Parts Hours:
  • Mon - Fri7:30 AM - 5:30 PM
  • Sat8:00 AM - 5:00 PM
  • SunClosed
Lum's GMC 45.22397, -123.19023.