Trade-In Equity Calculator

Understanding Trade-In Equity

Trade-in equity is the difference between what your vehicle is worth and what you still owe on it. If your vehicle is worth more than you owe, you have positive equity. If you owe more than it's worth, you have negative equity (also called being "upside down").

Positive Equity

When you have positive equity, you can use that amount as a down payment on your next vehicle, reducing the amount you need to finance.

Negative Equity

Negative equity means you owe more than your vehicle is worth. This can happen due to rapid depreciation, small down payment, or a long loan term. Options include:

• Rolling the negative equity into your new loan
• Paying off the difference in cash
• Waiting to trade in until you have positive equity