Published September 25, 2026
Find your current loan payout
Ask your lender for a current payout amount, including the date through which it is valid. A regular account balance may not be the final payout figure. If you own the vehicle outright, you can skip this step.
Compare payout with trade value
If the trade allowance is higher than the payout, the difference is positive equity that may help with the next purchase. If the payout is higher, the difference is negative equity. For example, a $16,000 payout against a $13,000 trade allowance leaves a $3,000 shortfall before any other costs.
Rolling that shortfall into a new loan can increase the amount financed and interest paid. The Financial Consumer Agency of Canada recommends understanding this risk before trading.
Get a useful appraisal
- Share the year, make, model, trim, kilometres and VIN.
- Describe condition honestly, including damage, warning lights and tire wear.
- Gather service history, keys and information on accessories.
- Ask for the written trade allowance and the complete price of the next vehicle separately.
Compare the whole deal
Look at the next vehicle’s price, any trade allowance, loan payout, taxes and fees, amount financed and total borrowing cost together. A high trade number alone does not tell you whether the overall deal fits your budget. If you want an appraisal, send the vehicle details and we can begin the conversation.