Open navigation Main Menu Mortgages

Financing a home purchase Refinancing your current loan Finding the best lender Additional Resources
Looking for a financial advisor? Take our 3 minute quiz and connect with an advisor today.



Main Menu Banking

Compare Accounts Use calculators Get help from bank reviews
Looking for a financial advisor? Take our 3 minute quiz and match with an advisor today.



Main Menu Credit cards

Compare with other categories Compare using credit Compare with issuers Get advice
You're looking for the perfect credit card? You can narrow your search using CardMatch(tm)



Main Menu Loans

Personal Loans Student Loans Calculators for Auto Loans and Loans
Find the perfect personal loan in 2 minutes or less. You can also answer a few questions to receive offers with no effect on your credit score.



Main Menu Investing

Best of Brokerages and robo-advisors Learn the basics Additional resources
Looking for a financial advisor? Try our three minute test and then match up the advisor you want today.



Main Menu Home equity

Find the lowest rates Lender reviews. Calculators. base
Looking for a financial advisor? Do our 3-minute quiz and connect with an advisor today.



Main Menu Real estate

Selling a house Buying a home Finding the right agent sources
Looking for a financial advisor? Try our three minute test and connect the advisor you want today.



Main Menu Insurance

Car Insurance Homeowners insurance Other insurance Company reviews
Looking for a financial advisor? Do our 3-minute quiz and then match up with an advisor today.



Main Menu Retirement

Accounts and retirement plans. Get the basics of retirement calculators Other sources
Looking for a financial advisor? Do our 3-minute quiz and match to an adviser today.



Search open Close search

Submit


Do you need to pay off your car before selling it? Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our goal is to help you make better financial choices by providing you with interactive financial calculators and tools as well as publishing high-quality and impartial content, by enabling you to conduct research and compare information for free to help you make informed financial decisions. Bankrate has partnerships with issuers including, but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The deals that are displayed on this site are from companies who pay us. This compensation can affect the way and where products appear on this website, for example such things as the order in which they may appear in the listing categories and other categories, unless prohibited by law. Our loan products, such as mortgages and home equity, or other home loan products. However, this compensation will affect the content we publish or the reviews you see on this site. We do not cover the entire universe of businesses or financial deals that may be accessible to you.



SHARE:

On This Page On This Page
Prev Next







praetorianphoto/Getty Images
3 min read . Published April 18 2022.
Writer: Kellye Guinan. Written by personal and business finance contributor

Kellye Guinan is a freelance editor and writer with more than five years ' experience within personal financial matters. She is also a full-time librarian at the local library, where she assists the community gain access to information on financial literacy, among other topics.







The edit was done by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate since late 2021. They are passionate about helping readers gain the confidence to take control of their finances by providing concise, well-studied facts that break down otherwise complicated topics into bite-sized pieces.









The promise of the Bankrate promise
More info
At Bankrate we strive to help you make better financial choices. While we adhere to strict editorial integrity ,
This post could contain references to products from our partners. Here's how we earn our money .

The Bankrate promise
In 1976, Bankrate was founded. Bankrate has a proven track experience of helping customers make smart financial choices.
We've earned this name for more than four decades through demystifying the financial decision-making
process, and giving individuals confidence about what actions to follow next. process and gives people confidence in the next step.
You can rest assured you can trust us to put your needs first. All of our content is created in the hands of and edited by ,
They ensure that what we write will ensure that our content is reliable, honest and trustworthy. Our loans reporters and editors concentrate on the things that consumers care about the most -- different types of lending options, the best rates, the most reliable lenders, how to repay debt, and much more. So you'll be able to feel secure when making a decision about your money.



Integrity in editing
Bankrate follows a strict standard of conduct, which means you can be confident that we'll put your needs first. Our award-winning editors and reporters provide honest and trustworthy content to aid you in making the best financial choices. Key Principles We value your trust. Our goal is to provide our readers with truthful and impartial information. We have standards for editorial content in place to ensure this happens. Our reporters and editors thoroughly check the accuracy of editorial content to ensure the information you're reading is correct. We maintain a firewall between advertisers as well as our editorial staff. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence Bankrate's team of editors writes for YOU the reader. Our goal is to give you the best advice to aid you in making informed financial choices for your own personal finance. We follow strict guidelines for ensuring that editorial content isn't influenced by advertisers. Our editorial staff receives no direct compensation from advertisers, and all of our content is checked for accuracy to ensure its truthfulness. So, whether you're reading an article or a review, you'll be able to trust that you're receiving reliable and dependable information.



How we make money
You have money questions. Bankrate can help. Our experts have been helping you manage your finances for more than four years. We strive to continuously provide our readers with the professional guidance and tools required to make it through life's financial journey. Bankrate adheres to a strict code of conduct , therefore you can be confident that our content is truthful and accurate. Our award-winning editors and reporters provide honest and trustworthy information to assist you in making the best financial decisions. The content we create by our editorial team is objective, truthful, and not influenced from our advertising. We're open about the ways we're able to bring quality content, competitive rates and helpful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated for the placement of sponsored products and services or by you clicking on certain hyperlinks on our site. Therefore, this compensation may affect the way, location and when products appear within listing categories, except where prohibited by law. We also offer mortgage or home equity products, as well as other home loan products. Other factors, such as our own website rules and whether a product is available within the area you reside in or is within your self-selected credit score range could also affect the manner in which products are featured on this site. While we strive to provide a wide range offers, Bankrate does not include information about each financial or credit item or service.



If you are still owing money on your car there are some steps to take prior to selling it. But be careful that negative equity could affect your finances. It's a workable situation but it can mean paying more than you're actually required to. How do you make payments on your vehicle prior to trading it in In nearly all instances, it's better to make a payment or pay off your before selling it or trading it into. The primary concern concerns whether there is positive or negative equity in your loan. If you have equity that is negative it is important to pay off your auto loan prior to trading into your vehicle. Possible equity On an auto loan means that you owe less on the car than it is worth. So, if you've got $10,000 remaining on your loan but your car has a value of $15,000 then you're left with $5,000 of positive equity. If you choose to sell your vehicle your equity could be used to purchase a new car for a down payment, reducing the amount you have to take out. Negative equity Negative equity is the reverse. If you still owe $10,000 on your loan however your car is only worth $8,000, you'll have $2,000 in negative equity. This is what lenders and columnists in the field of financial advice call " ." It's something you do not want to find yourself in. If you trade in your car, you'll have to pay the rest out of pocket. It is crucial to break even because it keeps you from converting negative equity into the new loan and paying for the car you're not driving. How do you trade or sell an automobile that you owe money for. People swap with and sell vehicles that have liens on them frequently. Dealers can advertise paying off your car for you when they upgrade it to more recent model. But is more complex than just switching one vehicle for another. Check out the value of your vehicle on websites such as Edmunds as well as Kelley Blue Book. Check out cars that have the same model and check out average selling prices in the surrounding areas. Determine your budget for your new car and the amount you have to pay on your current car. If you're owed more than you're likely to receive through trading it in, consider other options. Find maintenance records and other paperwork. This could increase the value of your vehicle in the event of a trade-in, by showing that it's been taken care of. Find offers on trade-ins from dealers and don't need to visit one location. Many people use the term "trade-in," but really, you're selling your car. You can and shop around for quotes from different companies to get the most competitive price. Make sure everything is written down , especially if a dealership promises to pay off your loan. Be sure to have an official copy of the deal. It's still your responsibility to pay the balance of your loan, so follow up and ensure you're lender is paid once you trade in your car. Alternatives to trading in the car If you're in default on your loan, trading it in is unlikely to be the best course of action. Instead, consider selling your car to an individual buyer, making the loan down or refinancing the loan at a lower interest rate. Utilizing a private buyer, as opposed to an auto dealer, could help you for more. However, you'll have to pay the lender and transfer the title yourself. This is something that the dealership usually handles on your behalf, therefore it could be a burden. Paying down the loan might not be an option for everyone. However, if your loan payments aren't currently costing you a lot, consider setting aside some extra money to reach a point of break-even. In this way, selling your car in will not involve the transfer of any remaining loan amount into the new car loan. Also, you should try to . Do not extend the loan period in order to reduce your monthly payment- this increases the chance that you'll end up in the red. Instead, you should reduce the amount you'll need to pay. Next steps Provided you aren't over the limit on your loan, trading in your car to get a less expensive option may be the ideal solution. If you do have negative equity, consider refinancing your loan instead. It could enable you to reduce your interest rate, so that you pay less in total. The most important thing is to not roll your current loan into a new loan. Talk to your lender to trade in your vehicle or locate another option to avoid taking on additional debt, if you are able to help to pay it. Learn more


SHARE:
Written by a Personal and Business finance contributor

Kellye Guinan is a freelance editor and writer with more than 5 years experience working in the field of personal finance. She's also a full-time worker at her local library, helping people in her community get information about financial literacy, among other topics.



Edited by Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate since the end of 2021. They are dedicated to helping readers gain confidence to control their finances through providing clear, well-researched information that breaks down otherwise complicated subjects into digestible pieces.






Auto loans editor




Related Articles Auto Loans 3 minutes read March 07, 2023

Auto Loans 2 minutes read 12 October 2022

Auto Loans 3 minutes read on Sep 30, 2022

Auto Loans 4 min read Sep 21, 2022






About
Help
Legal Cookie settings Don't share my information with anyone else.
How we make money Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for placement of sponsored products and, services, or for you clicking specific links on our site. This compensation could influence the manner, place and in what order items appear in listing categories and categories, unless it is prohibited by law. We also offer mortgage, home equity and other products for home loans. Other elements, such as our own proprietary website rules and whether or not a product is offered in the area you reside in or is within your own personal credit score could also affect the way and place products are listed on this site. While we strive to provide a wide range offers, Bankrate does not include details about every credit or financial product or service. Bankrate, LLC NMLS ID# 1427381 | BR Tech Services, Inc. NMLS ID #1743443 |
|

(c) 2023 Bankrate, LLC. It is a Red Ventures company. All Rights reserved.

If you adored this article and you also would like to acquire more info concerning louisiana same day online payday loan advance - credit-eqq.site, kindly visit our own web site.