How to Know the Equity of Used Vehicles

If hoping to make a profit when selling your used vehicle, you'll need to determine the amount of equity in the vehicle. Equity refers to the difference between the payoff balance on your vehicle and the car's value. Regrettably, some cars have negative equity, wherein the amount owed to a lender is more than the car's worth. In this situation, it becomes difficult to sell a car.

Instructions

1

Speak with your auto loan lender or read your most recent auto loan statement to learn your payoff balance.

2

Take your car to a dealership for an appraisal. Some auto dealerships offer complimentary appraisals. The appraiser will evaluate the condition of your vehicle and then determine the car's value.

3

Use online tools to learn your car's value. You can also estimate your car's value with websites, such as Kelley Blue Book. Choose the make and model of your vehicle, enter the mileage and estimate the car's condition. Based on this information, the website determines how much you can sell the car for and the trade-in value of the vehicle.

4

Calculate the equity. Once you learn your car's value, subtract your payoff balance from this figure to know if you have equity. For example, if your car is worth $10,000 and you owe the lender $7,000, the car's equity is $3,000.