Open navigation Main Menu Mortgages

Financing your home purchase or refinancing your current loan Finding the perfect lender Additional Information
Looking for a financial advisor? Try our three minute test and match to an adviser today.



Main Menu Banking

Calculators to compare accounts Use the calculators and get advice Bank reviews
Looking for a financial advisor? Try our three minute test and match the advisor you want today.



Main Menu Credit cards

Compare with other categories Compare using credit Compare by issuers
Looking for the perfect credit card? Find it with CardMatch(tm)



Main Menu Loans

Personal Loans Student Loans Auto Loans Loan calculators
Find the perfect personal loan within 2 minutes or less. Answer a few questions to receive offers with no effect on the credit rating.



Main Menu Investing

The Best Brokerages as well as robo-advisors Learn the basics Additional sources
Looking for a financial advisor? Try our three minute test and connect the advisor you want today.



Main Menu Home equity

Find the most competitive rates Lender reviews Use calculators Knowledge base
Looking for a financial advisor? Do our 3-minute quiz and then match up with an advisor today.



Main Menu Real estate

Selling a home Buying homes Finding the right agent Additional sources
Looking for a financial advisor? Try our three minute test and connect to an adviser today.



Main Menu Insurance

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



Main Menu Retirement

Accounts and retirement plans. Find out the basics about retirement calculators Additional sources
Looking for a financial advisor? Take our 3 minute quiz and then match up the advisor you want today.



Open search Close search

Submit


Should you 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 smarter financial decisions by providing you with interactive financial calculators and tools as well as publishing high-quality and impartial content, by enabling users to conduct studies and compare data for free and help you make informed financial decisions. Bankrate has partnerships with issuers such as, but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The offers that appear on this website are provided by companies who pay us. This compensation may impact how and when products are featured on this site, including such things as the order in which they appear in the listing categories, except where prohibited by law. Our mortgage, home equity, or other products for home loans. However, this compensation will affect the content we publish or the reviews that you read on this site. We do not include the vast array of companies or financial offerings that could be open to you.



SHARE:

On This Page on This Page
Prev Next







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

Kellye Guinan is a freelance editor and writer who has more than five years ' experience within personal finance. She also works full-time as a employee at her local library, where she assists the community gain access to information on financial literacy, as well as 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 the confidence to manage their finances through providing concise, well-studied facts that break down complex topics into manageable bites.









The Bankrate promise
More details
At Bankrate we are committed to helping you make better financial choices. While we adhere to strict editorial integrity ,
This article may include references to products from our partners. Here's a brief explanation of how we earn money .

The Bankrate promise
Founded in 1976, Bankrate has a proven track history of helping people make smart financial choices.
We've earned this name for more than 40 years by demystifying the financial decision-making
process and gives people the confidence to know what to follow next. Bankrate has a very strict ,
You can rest assured you can trust us to put your needs first. All of our content was written with and edited
We make sure that everything we publish is objective, accurate and reliable. Our loans reporters and editors focus on the areas that consumers are concerned about most -- the different types of lending options as well as the best rates, the most reliable lenders, the best ways to pay off debt and many more, so you can feel confident when making a decision about your money.



Editorial integrity
Bankrate follows a strict and rigorous policy, so you can rest assured that we'll put your needs first. Our award-winning editors and journalists produce honest and reliable content to aid you in making the best financial decisions. The key principles We value your trust. Our goal is to provide readers with truthful and impartial information. We have editorial standards in place to ensure that this happens. Our reporters and editors thoroughly verify the truthfulness of content in order to make sure that what you read is correct. We maintain a firewall with our advertising partners and the editorial staff. Our editorial team does not receive any direct payment by our advertising partners. Editorial Independence Bankrate's team of editors writes for YOU - the reader. Our aim is to provide you the best advice that will aid you in making informed financial decisions for your personal finances. We adhere to strict guidelines in order to make sure that the content we publish isn't affected by advertisements. Our editorial team receives no direct compensation from advertisers, and all of our content is verified to guarantee its accuracy. Therefore, whether you're reading an article or a review, you'll be able to trust that you're receiving reliable and reliable information.



How we make money
There are money-related questions. Bankrate can help. Our experts have been helping you master your finances for more than four years. We are constantly striving to give our customers the right guidance and tools required to be successful throughout their 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, reporters and editors create honest and accurate content to help you make the best financial choices. The content created by our editorial staff is objective, factual and is not influenced through our sponsors. We're open regarding how we're capable of bringing high-quality information, competitive rates and useful tools to our customers by revealing how we earn money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or when you click on certain links posted on our site. So, this compensation can impact how, where and when products are listed and categories, unless it is prohibited by law for our mortgage home equity, mortgage and other products for home loans. Other factors, like our own website rules and whether the product is offered in the area you reside in or is within your own personal credit score can also impact the manner in which products are featured on this website. We strive to offer the most diverse selection of products, Bankrate does not include details about every credit or financial product or service.



If you have a balance on your car There are a few steps to take prior to trading it in. But be cautious because negative equity can be a major impact on your financial situation. It's a workable situation however it could result in paying more than you're required to. When to make payments on your vehicle prior to selling it all instances, it's better to pay off or eliminate your debt prior to selling it or trading it in. The main 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 before trading into your vehicle. Positive equity Positive equity on an auto loan is when you are owed less on the car than it is worth. So, if you've got $10,000 remaining on your loan, but your vehicle has a value of $15,000 then you have $5,000 in positive equity. If you choose to sell your car, the positive equity can be used to purchase a new car to be used as a down payment, reducing the amount you'll need to borrow. Positive equity Negative equity does the other. If you still need to pay back $10,000 on your loan but your car is worth only $8000, you'll end up with $2,000 in negative equity. This is what financial advice columnists call " ." This is something you do not want to find yourself in. If you decide to trade in your car, you will be required to pay for the remaining out of your pocket. In addition, breaking even is essential because it keeps the possibility of rolling negative equity into a new loan or paying for a car you are not driving. How to trade or sell a car you still owe money for. People trade in and sell cars that have liens on them frequently. Dealers can claim to pay off your car for you after you upgrade to a new model. But is more complex than changing one car for another. Find out the value of your car on websites such as Edmunds or Kelley Blue Book. Look at vehicles with similar trims and look at average selling prices in nearby areas. Estimate your budget for the next vehicle and what you have to pay on your current car. If you owe more than you're likely to get through selling it, think about alternative options. Find maintenance records as well as other documentation. This could increase the value of your car in the event of a trade-in, by showing that it's been taken good care of. Find offers on trade-ins from dealers and don't need to visit one location. Everybody uses the term "trade-in," but really, you're selling your vehicle. You are able to shop for different quotes to get the most competitive price. Be sure to get everything written and especially if the dealer assures you that they will pay off the loan. Make sure you have an official copy of the deal. You're still responsible for paying off your loan and you must follow up and make sure that you're lender is paid after you've traded in your vehicle. Alternatives to trade in the car If you're upside down on your loan, trading it in is unlikely to be the best course of action. Instead, think about selling your car to an individual buyer, making down the loan up front or refinancing the loan at a lower interest rate. A private buyer, rather than dealers, can assist you with more. However, you will need to handle paying back your lender and then transfer the title yourself. This is something that the dealership usually handles for you, but it may be an added inconvenience. Paying down the loan may not be an option for everyone. However, if your loan payments aren't currently making you rich, put aside some additional funds to make it even. This way, trading your vehicle in won't require rolling any remaining loan balance into your new auto loan. Also, you should try to . Do not extend your loan term in an attempt to lower your payment -which increases the risk that you'll go upside down. Instead, cut down on the total amount that you need to pay. Next steps Provided you aren't upside down on your loan swapping your car to get cheaper alternatives could be the best option. If you have negative equity, consider refinancing it instead. It might enable you to lower the interest rate so you pay less in total. But, most importantly, don't transfer your current loan into a new loan. Work with your lender, sell your car or find another option to avoid taking on additional debt if you can help the situation. Find out more


SHARE:
Written by a Personal and Business finance Contributor

Kellye Guinan is a freelance editor and writer who has more than five years ' experience within personal finance. She is also a full-time librarian at the local library, where she assists her community access information about financial literacy, among other subjects.



Edited by Rhys Subitch Edited by Auto loans editor

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






Auto loans editor




Related Articles Auto Loans 3 min read Mar 07, 2023

Auto Loans 2 min read 12 Oct 2022

Auto Loans 3 min read Sep 30, 2022

Auto Loans read in 4 minutes Sep 21 2022






About
Help
Legal Cookie settings Don't sell my info
How we make money Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for placement of sponsored products andservices or by you clicking on certain hyperlinks on our website. Therefore, this compensation may affect the way, location and when products appear in listing categories, except where prohibited by law. This is the case for our mortgage or home equity products, as well as other products for home loans. Other factors, such as our own website rules and whether the product is available within your region or within your self-selected credit score range can also impact the way and place products are listed on this site. While we strive to provide an array of offers, Bankrate does not include information about every financial or credit 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 liked this article and also you would like to acquire more info pertaining to same day payday loans online reviews - https://payday-qw.site, kindly visit our web page.