TRADE-IN EQUITY CHECK
Separate the old loan shortfall from the next car deal.
Enter the lender's official payoff and the dealer's actual trade-in offer. The difference shows the equity position before price, taxes, fees or new financing are mixed in.
Negative equity
$3,500
Trade-in offer$18,500
Loan payoff$22,000
Difference-$3,500
This compares two transaction numbers only. It does not estimate the price, tax, fees, APR or amount financed on a replacement vehicle.
What the number means
If payoff is higher than the trade-in offer, the difference is negative equity. If the offer is higher than payoff, the difference is positive equity. The dealer worksheet should make clear where that difference goes in the transaction.
Why use an official payoff
A dashboard principal balance can be lower than the amount needed to satisfy the account on the closing date. Use the lender's dated payoff quote when reconciling a real trade-in.