 TITLE: How Much Equity Should I Have in My Car Before I Sell? CONTENT: How Do I Know if I Have Positive Equity in My Car?\n--------------------------------------------------\nYou have positive equity in a car if the vehicle is worth more than you owe on your auto loan. If the car is worth less than you owe on your loan, you have negative equity, which is also called being upside down on your loan.\nTo figure out whether you have positive equity in your car, start by determining how much the car is worth. You can estimate the car's value using the calculator tools at the Kelly Blue Book or Edmunds websites. Just input your car's make, model, year, condition, mileage and other factors to estimate both its trade-in value and its private-party value. (Trade-in value is generally lower than private-party value; however, when you trade in the car, you don't have to deal with the hassles of placing ads, responding to buyers and showing the car.)\nOnce you have an estimate of your car's value, contact your lender to get the exact payoff amount you owe on your auto loan. (If you plan to sell the car privately, you should also get a payoff letter you can show to potential buyers.) Subtract the payoff amount from the car's value to see if you have positive or negative equity. END