The statement that some car dealerships make that promise to "pay off your trade" may not mean what you think it does if you owe more on your current loan than your vehicle is worth.

Remember, if you still owe on a vehicle, the lender owns the car and, in most states, holds the title. Many states make it illegal to sell a vehicle without a title. If you’ve lost the title, getting a replacement is a relatively simple process. But if you don’t have a title because you didn’t pay off your loan, you’ve just sold a stolen car – which is certainly illegal.

When it comes time to trade in your car, it pays to be prepared. Deciding to trade in your vehicle to a car dealer instead of selling it privately comes with some benefits and less stress.

It's common to trade in a vehicle before it's paid off, but the situation gets tricky if the car is worth less than what you owe on it.

According to a recent report, almost one-third of cars consumers traded in on new car purchases had negative equity in 2017.

Many of our customers want to know if it’s possible to trade in a car with a lien listed on the title.

When you're ready to buy your next car, should you sell your old car privately or trade it in? There are benefits to both options, so it really comes down to what's most important to you.

When it’s time for another vehicle, owing money on your current loan shouldn’t necessarily stand in your way. No matter how it’s done, the current loan must be paid off. You're usually faced with two choices if your trade-in doesn't cover what is owed.

Since most problem credit lenders require a down payment, you'll need enough trade equity for the down payment. If it isn't enough, the difference can be made up in cash. But if you have a negative equity trade, you'll need to come up with a cash down payment plus enough to cover the negative equity in order to meet the down payment requirements of the lender.

At Auto Credit Express, we understand the challenges of trading in a car while handling bad credit. We give a simplified version of what someone should do.