Whether you are selling or trading your car in, knowing the amount of equity you have in it can mean the difference between making money or losing money on the deal. Equity is the value of the vehicle less the amount you owe on the vehicle. If you owe more than the car is worth, the value is upside-down, meaning you owe more than you can sell for and have zero or negative equity in the vehicle.
Instructions
- 1
Visit the Kelley Blue Book website (kbb.com) and enter the make, model and year of your car to determine the value of your vehicle. Enter the options that the vehicle has and select a condition level.
2Call your automobile financier and ask what the payoff on your vehicle is. The payoff amount is the amount you owe on the vehicle less any remaining interest charges.
3Subtract the amount you owe from the value of your vehicle. For example, if the Kelley Blue Book website values your vehicle at $8,000 and you owe $3,000 on the loan, your equity is $5,000.
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