How to Upgrade Your Vehicle Now

Tech and safety advances are changing quickly. As a result, you may find yourself wanting a new vehicle before your current loan term is up and thinking, “can I value my trade now?” When you’re ready to purchase a new vehicle but you still owe money on your current model, start by using our “Value Your Trade” tool to determine your car’s value. Once you know how much your vehicle is worth, you can then start calculating your equity. Your equity will determine which vehicles you can afford. Put simply, you can trade in your car if it’s not entirely paid off, but whether you have positive equity or negative equity is what makes all the difference.

We’ve got everything you need to know to turn your current, older vehicle into a new, modern model without overspending. We’ll show you how to trade your car in even if you haven’t paid it off yet. We’ll also explain the differences between positive and negative equity and how to value your trade. You’ll even learn how to choose a dealership that can upgrade your vehicle without creating more debt. Finally, we’ll look at great trade-up vehicle options to get you started.

What Happens to My Current Loan?

When you want to purchase a new vehicle and you still have a loan out on your current vehicle, the existing loan does not disappear. You still have to pay off your current loan and get approved to finance your new one via a different loan. The good news is that you may be able to profit enough from your trade-in to pay off the current loan. You may even get a high enough trade-in value to pay off the current loan and make a downpayment on the new vehicle. This is where positive and negative equity come in.

Positive Equity vs Negative Equity

If you’ve paid ahead on your vehicle and you owe less than the vehicle’s worth, you have positive equity. For example, if your vehicle is worth $15,000 and you only owe $8,000, you can take the $7,000 profit and use it as a down payment for your new vehicle.

On the flip side, if you owe more on your vehicle than it’s worth, you have negative equity. Here’s an example: let’s say your vehicle is worth $15,000, but you still owe $17,000 on it; you will still owe $2,000 on your loan even after you trade your vehicle in for $15,000. In this case, you’ll have to pay that $2,000, plus a downpayment on your new vehicle.

It’s clearly best to have positive equity when you trade your vehicle in; however, that doesn’t mean you shouldn’t trade your vehicle in if you have negative equity. The best option is to pay your current loan off out of pocket. If you can’t afford to do that, you can also take out a personal loan and pay that $2,000 difference off over time. Lastly, you can transfer your debt to your new vehicle loan.

How to Value Your Trade

There are many tools available that can help you efficiently estimate your vehicle’s value. Popular options include Kelly Blue Book, Carmax, and AutoTrader. Dealerships like ours often include trade valuing tools directly on their website. Some tools ask for more information than others, but generally, you’ll just need the make/model/year/trim. You can also use your VIN or license plate number. We use TradePending for our trade-in value tool, so you get the most accurate offer possible.

Once you enter this information, you will answer questions about your vehicle’s condition. Make sure that you answer these questions honestly. You will not get an accurate trade-in value if you answer these questions dishonestly. Submit your answers, and you will receive your vehicle value instantly. No waiting on emails, letters, or phone calls. You can also bring your trade-in vehicle to us for an in-person evaluation and offer if you prefer.

All About Our “Vehicle Upgrade Program”

If you’re going to trade your vehicle in before the loan is paid off, don’t just sell it to the first dealership you visit. You know how much your vehicle is worth once you value your trade. Don’t accept offers that are lower than your vehicle’s estimated value. At Romeoville Toyota, we offer a “Vehicle Upgrade Program,” which allows us to buy your used vehicle at a higher-than-average price. Sometimes we can pay you above market value, depending on your vehicle’s condition.

Part of what makes our program so unique is that we can get you a brand-new vehicle without increasing your usual monthly payment. In some cases, you may even end up with a lower payment thanks to our low-interest rates and lease prices. When you participate in our Vehicle Upgrade Program, you’ll get two years of free maintenance visits. We make it so that you can enjoy the technologies and benefits of a new or newer used vehicle without significantly increasing your monthly payments.

Popular Vehicle Options

Now that you’re ready to upgrade your vehicle, it’s time for the hard part––choosing which model best suits your needs. Whether you want a car, a minivan, an SUV, a truck, a hybrid, or an electric model, Toyota has something for you.

Cars / Minivans

We recommend the Corolla and the Camry to car buyers. These two Toyota models are both fuel-efficient. The Corolla is a compact sedan, while the Camry is a midsize sedan, so if you need the additional space, go with the Camry. Despite their size differences, the most recent generations offer similar fuel economy ratings as long as you stick with the turbocharged I-4 engines.

SUVs

Favorite Toyota SUV models include the C-HR, RAV4, and 4Runner. The most affordable option is the C-HR. It’s fuel-efficient and great for everyday commuting. The RAV4 is the best option when you need good fuel efficiency and minor towing capacity. Conversely, the 4Runner is less fuel-efficient but much more powerful and is designed for adventure and off-roading capability.

Trucks

Toyota truck options include the Tacoma and the Tundra. The Tacoma is a midsize truck that’s ideal for average towing and hauling. When you need to tow campers or larger items, the Tundra is a full-size truck that can tow up to 12,000 lbs when you choose the newest generation model. Despite the Tacoma’s smaller size, its fuel economy rating is in line with the Tundra’s; however, the Tacoma has a lower MSRP and is ideal if you don’t need the additional towing capacity.

Hybrid and Electric Options

Hybrid and electric vehicles are better for the environment and are much more affordable overall––especially at the fuel pump. There are ten different available 2022 hybrid and electric Toyota models. There are hybrid versions of the aforementioned Corolla, Camry, and RAV4 models. Other hybrid/electric options include the Prius, which can get over 50 MPGe, and the new all-electric bZ4X SUV.

Upgrade Your Vehicle Today!

Too many people are overpaying for older, less reliable vehicles. The interest rate and price that you agreed to several years ago are likely not worth it today. We help you get a brand-new vehicle for roughly the same price or even cheaper than your current model. Plus, Toyota vehicles come with impressive standard safety features and technologies, even at the base level. When you want more for your money, click the “Value My Trade” button to get started. At our dealership, we don’t trade in; we trade up.