Check your current loan payoff amount
Find your car’s trade-in value
Compare the payoff amount to the trade-in value
If the trade-in value is higher than the payoff amount, use the difference as equity toward your next car
If the payoff amount is higher than the trade-in value, prepare to pay the difference or roll it into the new loan
Contact your lender for the exact payoff quote
Gather your loan account information, title details, and vehicle documents
Clean the car and fix minor issues to improve trade-in value
Get trade-in offers from multiple dealerships
Negotiate the trade-in value separately from the price of the new car
Review the new loan terms carefully if any negative equity is rolled over
Sign the payoff and trade-in paperwork at the dealership
Confirm the lender receives the payoff and the loan is closed
Keep copies of all documents and final statements