Trading In a Car You Still Owe Money On in Las Vegas

Yes, you can trade in a car that is not paid off. People do it every day. The only question is whether you have equity (the car is worth more than you owe) or negative equity (you owe more than it is worth), because that decides how the trade works.

Step 1: Find your payoff amount

Your payoff is not the balance on your last statement. It includes interest up to the payoff date. Call your lender or check their app and ask for a 10-day payoff quote. Write down the lender name and your account number too; the dealer will need both.

Step 2: Find out what your car is worth

Get a real offer, not just an online estimate. Online values are a starting point, but the number that counts is what a dealer will pay for your car in its actual condition. You can get a quote from us on Trade Your Car, whether or not you buy from us.

Step 3: Do the math

If the car is worth more than you owe (equity)

Example: your car is worth $9,000 and you owe $6,000. The dealer pays off the $6,000 loan and the remaining $3,000 works like a down payment on your next car.

If you owe more than it is worth (negative equity)

Example: your car is worth $7,000 and you owe $9,000. That $2,000 gap does not disappear. You can pay it in cash, or, if the lender allows, it can be added to your new loan. Rolling it in is convenient but means you start the new loan owing more than the new car is worth, so keep it as small as you can.

A Nevada bonus: the trade-in tax credit

In Nevada, sales tax on a vehicle purchase from a dealer is generally charged on the price after your trade-in value is subtracted. On a $3,000 trade at Clark County's 8.375% rate, that is about $250 less in tax than selling your car privately and buying separately. Check the figures on your paperwork.

What to bring

• Your car and all the keys (a missing key can lower the offer)
• Your registration
• Your lender name, account number and payoff quote
• The title, if you have it (if the lender holds it, they release it after payoff)
• Your driver license

How long does the payoff take?

The dealer sends the payoff to your lender after the deal is signed. Keep making your normal payments until your lender confirms the loan is paid off, so you never risk a late payment on your credit.

Trade or sell privately?

Selling privately can bring a higher price, but with a loan on the car it is harder: the buyer has to wait for the title, and you lose the tax credit. We compare both in trade in or sell privately.

Get a number

Bring your car to 5015 W Sahara Ave Ste 127, or start on Trade Your Car. We handle payoffs on financed cars routinely. Open seven days, (702) 471-1549. Se habla español.

General information, not tax or legal advice. Financing and adding a balance to a new loan are subject to lender approval.