Negative equity might sound intimidating at first, but once you learn more about it and the available options for people in your position, it’s not that bad. It’s like having another credit card with a , and you know the minimum payment will be super high.
The good news is that many car dealerships will pay off your loan if you have negative equity.
How can I locate local car dealerships that pay off negative equity?
Finding a local car dealership that finances the negative equity in your present vehicle has been simpler thanks to the Internet. Driving around town in search of the ideal model and pricing range for a new or used car is no longer essential. Instead, you can access all the top dealerships with a single click!
You can visit websites, such as and , that allow users to search for nearby dealerships and cars. Even locations to rent a manual vehicle seem to be popping up everywhere.
If you know the kind of car you want, it shouldn’t be difficult to find a good dealership to pay off your negative equity.
How Do Car Dealerships Handle Underwater Loans?
- How Do Car Dealerships Handle Underwater Loans?
- What Dealerships Pay Off Negative Equity?
- How To Find Dealerships That Will Pay Off Your Trade No Matter What?
- Pre-Visit Checklist For a Dealership That Offers to Buy Your Trade-In
- How to Pay Off Your Negative Equity Without Going to a Car Dealership
- Dealerships That Pay Off Negative Equity Near Me Summary
When it comes to accepting trade-ins for vehicles, dealers are typically accommodating. They’ll probably take your car off your hands, though you might not get as much money as if you sold it yourself.
Dealerships that are ready to accept negative equity must examine both the credit history of the borrower and the vehicle’s current market value.
For the dealership to , you must bring the following:
- Bring the vehicle to evaluate its condition, such as used tires and paint scratches
- Look up the accident history using the VIN number. and maintenance records like oil changes, flywheel resurfacing, resurfaced brakes, wheel alignments, and more.
- Provide the documentation for your auto loan indicating your payments and the amount paid off.
You would be responsible for the $13,000 difference, for instance, if you wanted to trade in your 2018 Toyota Highlander for a newer model that costs $45,000 but is worth $32,000 instead.
But, if the loan sum for the trade-in vehicle is still $34,000, the auto dealer may accept the trade-in car and add $2,000 to the value of your new car (the loan balance of $34,000 less the trade-in value of $32,000), for a total of $47,000.
Before giving you the title for the new car, the dealership will pay off your old loan.
What Dealerships Pay Off Negative Equity?
The best car dealerships that are renowned for paying off negative equity are listed below:
- Berkshire Hathaway Automotive
- Inc. The Imperial Automobile Company.
- Penske Automotive Group
- Inc. Sonic Automotive.
How To Find Dealerships That Will Pay Off Your Trade No Matter What?
Finding a dealer who will accept the remaining value of your trade-in can be challenging. There are dishonest vehicle dealers who deceive customers with false guarantees. Some companies assert that they can help customers pay off their car loans. The majority of the time, though, it’s too good to be true.
These dealers intimidate their customers by using fear. They want you to think they can afford to spend more money than your car is worth. The trade-in value, however, is lower than the balance owed on the vehicle.
In addition, there can be hidden fees related to removing negative equity. Before you make an appointment with a car dealership, you must know.
Here are some tips to help you locate car dealerships that will accept your trade-in:
Customer Reviews Online
It isn’t easy to know if any dealership is legit based on its website. So instead, check its customer rating and review on the Better Business Bureau, Google, and .
If there are no warning signs, keep your appointment as planned. Nonetheless, you might want to reevaluate your choices if the dealership has low average reviews. Consider having your vehicle valued by a different dealer if the dealership has received more negative than good ratings.
Check The Better Business Bureau (BBB)
Before you approach a car dealership claiming to have the ability to remove negative equity from your vehicle, make sure that they’re a registered business. You can find this information on and Google by simply typing in the company name.
Never sign any papers with a dealership before making sure it’s legitimate and doing your research.
Proven Track Record
It’s simpler to accept that a car dealership is reputable if it’s been around for a while and has a track record of providing excellent customer service.
Avoid visiting new-car dealerships. Since they have no prior experience with this kind of auto financing, it is unlikely that they will be able to eliminate your debt.
Ask Family and Friends
To help you eliminate negative equity in a car, see if any of your family or friends have sold their vehicles to a reputable dealership. Perhaps the location will look after you as well.
Be Wary of $6,000 Trade-in Offers or Promotions
Customers who trade in cars are frequently the target of special marketing promotions, like the $6,000 trade-in incentive provided by some dealerships.
No matter how bad it is, you might get up to $6,000 for your old car. It is referred to as the push, pull, and tug trade-in program by some businesses. Within your means, you decide on a new car, and in exchange for the cash, you agree to assume the debt.
Although it is offered by many dealerships, you should only consider this kind of auto finance at a reputable automobile dealership.
Pre-Visit Checklist For a Dealership That Offers to Buy Your Trade-In
Before visiting a dealership, a pre-visit checklist is required. It gives you all the possibilities and makes the car-buying process easier.
Before you go to an car dealer for the first time, make sure you do the following:
Consider Your Financing
See if your local bank or credit union offers new and used car financing. Again, it’s best to get pre-approval before going into the dealer. It puts you in a better position to get a better price, better financing and eliminates issues when paying for the car.
It’s important to know what your car is worth before going in. Use or online to get your used car value based on your vehicle’s mileage, features, and condition.
Also, search for a similar car being sold at nearby dealerships for comps.
Know Your Credit Rating
Your credit score significantly impacts your financing options to pay off your negative equity. Knowing your credit score may determine how to bargain for a lesser price or better terms.
Consider using for free to get your credit score regularly. It will also give suggestions on how to raise your credit score fast.
Assess Your Car’s Trade-in Price
Determine what you ought to demand for your trade-in by using a pre-visit checklist. The online salesperson should be able to accurately appraise the value of your car in many circumstances.
Make Inquiries for The Car You Want to Buy
Prior to entering the dealership, decide on the brand and model of the car you desire. Although it will quicken the process, always have a backup plan in case the car sells or the dealer wants to offer you a better deal. If they are aware that you only like one particular car, they will try to overcharge you.
How to Pay Off Your Negative Equity Without Going to a Car Dealership
You don’t have to trade in your car at the dealership. You might also be able to sell your car to a private party.
To find out your options and obligations, first call the lender who is in charge of your auto loan. Knowing that a private seller will compensate you better than a dealer, your lender might cooperate with you.
Dealers typically won’t offer more than wholesale value in exchange for a trade-in. Yet, a private buyer will probably offer you a higher price to assist you make up for any negative equity on your car.
Dealerships That Pay Off Negative Equity Near Me Summary
You need to be aware of what to look for when investigating dealerships that pay off negative equity.
When shopping, you need to know how much they’ll pay off in negative equity, and it shouldn’t be based on the type of car you buy. Compare different dealerships and their prices before trading in your car.
You can also read our articles on sites where used car batteries can be sold for money and the best and most powerful subwoofer box for your vehicle.