What happens if your car is worth more than the trade in?
At the time of the actual trade transaction, your car dealer will pay you the difference between what your trade-in is worth and the price of the car you are purchasing.
Some states only charge taxes on the net sales amount after the trade in.
In this case, you would owe nothing..
What happens if you trade in your car for a cheaper one?
If your trade-in is financed and you have equity, the dealer will pay the remainder of the loan and subtract the equity from the price of the less expensive car. If the equity of your trade-in exceeds the price of the car your trading for, the dealer will cut you a check for the difference.
Can I part exchange my car if it’s worth more?
It is entirely possible that you can part exchange your car for a cheaper one. If the car you are part exchanging is worth more than the one you are buying, and the finance is fully paid off, you are often able to use your outgoing car as a full payment for the new one and we’ll give you any difference in cash.
Can I trade in a car that I am still paying for?
You can trade in a vehicle even if you still owe money on its loan. In fact, it’s common for dealers to take care of consumers’ old financing. They’ll pay off the remaining loan balance on your trade-in and obtain the car’s title directly from the lender.