"How do I trade in my car?" is a question that most car owners ask before purchasing their next vehicle. You'll be happy to hear that Heritage | MileOne Autogroup offers a seamless, stress-free trade-in process - including in situations where you still owe money on your car. Here's an overview.
Positive vs. Negative Equity
Positive equity is when your current car is worth more than you owe. In this case, our Baltimore, MD car dealers will pay off your existing loan and apply the remaining balance to the price of your new car. On the other hand, negative equity is when you owe more than the car is worth on the open market.
What are My Options When Equity is Negative?
If you have negative equity, we have two options for your consideration. One option is to pay-off the difference between your old car's value and what you still owe on it. This would happen before you purchase your next Heritage car for sale. Your other primary option is to roll the negative equity from your old car into your loan for the new car.
The first option is appealing because you avoid increasing the cost of your new car. The downside is that, depending on how much you owe on your old car, making a lump-sum payment may not be feasible. The second option doesn't require a lump-sum payment, which means you avoid having to "pay for two cars" - in other words, paying off your old car and making a down payment on the new one. The downside is that rolling over your negative equity will increase the loan balance, monthly payments, and total interest you pay on the car.
What Should I Do First?
Before choosing between these options, you should contact your lender and get a payoff quote for your current car. Once you have this quote, visit our website and use our online appraisal tool to confirm the market value of your current vehicle. Armed with this information, our team can help you decide between the two options above.
Trade in Your Car At Your Closest Heritage | MileOne Dealership
When you're ready to buy your next automobile, the last thing you want is a hassle when trading in your old car. Trust Heritage | MileOne Autogroup to provide a seamless transition from "old" to "new", guided by our experienced finance and auto lease specialists.
