Short answer
If your trade is worth more than the payoff, the difference is positive equity and works like a down payment. If you owe more, it's negative equity, and it has to be paid or added to the new loan.
Get a payoff quote from your lender with a good-through date. In Wisconsin, sales tax is generally figured on the price after the trade-in allowance; confirm the details on your deal.
Run your numbers
Trade, payoff and amount financed
A rough worksheet to compare proposals on the same terms. Wisconsin generally taxes the price after the trade-in allowance; confirm your exact tax with your sales consultant or the Wisconsin DOR. Not a quote or a credit offer.
Get a real payoff quote
Your lender can give a payoff amount good through a specific date. It's usually different from the balance on your statement because of interest.
If you have negative equity
You can pay it, roll it into the new loan, or wait. Rolling it in raises the amount financed. Compare offers on the same terms with .
Wisconsin tax and trades
Wisconsin DOR Publication 202 explains how sales tax applies to motor vehicle sales with a trade-in. We'll show the tax line on your quote.
Before you start
Bring or confirm
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Staff picks for this
Recommendations from the Swant Graber team that put this guide to work.
A local next step
Swant Graber Motors (Chevrolet, Ram, Dodge) is at 1690 E Division Ave, 715-537-5657. Swant Graber Ford is across Highway 8 at 1697 E Division Ave, 715-537-9500. Barron, WI 54812. Send your question or the vehicle details before you visit and the right person will be ready. Shop new and used inventory.
Questions
Can I trade in a car I still owe money on?
Yes. The payoff is handled as part of the deal. If you owe more than the trade is worth, that negative equity is paid or added to the new loan.
