How to Trade In a Used Car You Owe Money On

How to Trade In a Used Car You Owe Money On

Written by March 02, 2022

When buying or financing a car, you can save yourself money by trading in your current vehicle. A trade-in is basically a transaction where you sell your vehicle to the dealership to replace it with another one.

This money-saving process is a great way to bring down costs when shopping for cars. However, trading in your car becomes a complicated procedure when you still owe money on it.

Can I trade in my car if I still owe money on it?

Yes! At, we allow customers to trade in a financed car. The remaining balance on the trade-in car gets transferred to the car getting purchased. Depending on how much you owe on your trade-in, two things can happen:

  1. If the trade-in offer is more than what you owe on your car loan, you’ll be able to apply this difference towards the purchase price of one of our cars. For example, if you have $2,000 left in car payments and the trade-in offer is worth $5,000, that means you’ll be able to reduce the sales price of one of the cars in our online inventory by $3,000.
  2. If the trade-in offer is less than what you owe on your car loan, then you have negative equity on your car. You’re accountable for this debt, and it needs to be resolved.

Negative equity is what happens when the amount owing on your vehicle exceeds the trade-in value of your vehicle. In this circumstance, you can settle up by paying the remaining balance in cash, or you can choose to carry over the remaining balance into your new car loan.

What does it mean to “roll over” a car loan?

When the value of the car won’t cover the amount you owe for it, you can choose to “roll over” your car loan when doing a trade-in. This means will take care of the remaining balance of the old loan by adding that amount to a new loan when you finance a car with us.

“Rolling over” a loan could be the most convenient option for people with negative equity who want to purchase another vehicle. In this way, you’re simplifying both car loans into a single payment that combines the previous auto loan and the one for the new purchase.

Our simple online form allows you to include your trade-in vehicle and outstanding loan amount into your application. An Axis Advisor can also walk you through the process and show the impact on the loan.

How does the trade-in process work at wants to ensure that our customers experience high levels of satisfaction in everything that we do. That’s why our trade-in process is designed to be completely simple and transparent, making for a hassle-free procedure that gives you the results you need.

Our trade-in starts when one of our Advisors schedules a trade-in inspection with you. Simply come to our Fulfillment Centre with your vehicle, and you’ll leave with a firm offer that remains valid for 7 days. Our Advisors will update your financing terms, if there is any difference from the original trade-in estimate.

How does determine the trade-in value?

We pull the estimated trade-in value of all trade-ins directly from the Canadian Black Book, the definitive source for vehicle valuations in Canada since 1960. This unbiased resource for consumer valuations takes into account vehicle mileage, year, make, model and trim to produce the most accurate and widely accepted appraisal for your car.

What type of factors determine a vehicle’s trade-in value?

The amount you’ll get for trading in your car depends on your car and these factors:

  • The vehicle’s year, make, model and trim level
  • Additional vehicle features and upgrades
  • Vehicle mileage (kilometres on the odometer)
  • The overall condition of the vehicle (interior, exterior, engine, tires, etc)
  • Current conditions in the used car marketplace: local availability and prices.

How can I find out my car’s trade-in value by myself?

For your convenience, offers our customers the use of our Trade-In Estimator. This free online tool allows you to quickly and accurately find out the value of the car you want to trade in. Just input the car’s make and model along with its year, trim, and mileage. We’ll automatically provide you with the trade-in value as sourced from the Canadian Black Book.

For more convenient online tools, try our Auto Loan Estimator to estimate the monthly payments required for one of our cars, or to figure out how much you can afford for a car based on your budget.

How can I find out what I have left to owe on my car loan?

You can find out the remaining balance of your financed vehicle on your monthly payment statement. Or, for the most direct approach, you can also call your lender and request a payout amount.

Do I have to buy a car from once I trade in my vehicle there?

Not at all! At, we believe our customers should have the freedom to determine their own choices in order to fulfil their own financial goals. Once you make a trade-in at, you’re free to do as you please. We pay cash for a trade-in; no further purchase is required.

Do you pick up my trade-in vehicle, or do I need to bring it in?

We offer both options! is an online platform that allows customers to purchase vehicles from the comfort and convenience of their own home. We deliver your newly financed and fully sanitized vehicle straight to your door, and that means we can offer the same convenience by picking up your trade-in when we deliver your new car!

What’s the minimum criteria for trade-in vehicles? only accepts trade-ins that are safely operable and have a model year of 2006 or later.

Trading in your car at is a simple and transparent procedure that provides our customers with fair results and good value. If you’re interested in a trade-in, be sure to contact us today! We’re here to help!

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