How to Determine the Equity in a Car
If you have equity in your car, your car is worth more than you owe. You determine the amount of equity by calculating the difference between your car's value and the balance owed on the car.
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Instructions
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1
Find out the payoff amount. If you own your car, skip to Step 2. You need to call the lender who holds the title for your car and request a payoff amount. Most leased vehicles have no equity for the lessee.
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2
Get an appraisal for your car. The most common appraisal is Kelley Blue Book value. On the website, select the "Used Car Values" link. Enter the year, make and model of your vehicle and select "Go." When prompted, enter your zip code and press "Go."
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3
Choose what type of value. The market you want determines the equity. You have more equity if you sell your car as a private party than you do if you sell it to a car dealer. Once you choose a value, select your trim from the list, enter the current mileage on your odometer, select the equipment from the list and click "continue."
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4
Determine the condition of your car. A well maintained car has more equity than a car in fair condition. Most dealers and buyers plan on paying based on the good condition value. Once you select the condition, click "Continue." Values are shown for excellent, good and fair condition.
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5
Compare the value to the amount you owe. If the value is higher than your payoff amount, subtract the payoff amount from the value and you'll have the amount of equity. The value is the equity if you own the car outright. If you owe more than your car is worth, you don't have any equity in the car.
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Tips & Warnings
A used car dealer can tell you Kelley Blue Book value.
