How can I trade a car in that I have a balance on?

Question

I have a 1998 Pontiac Trans Sport that I owe $6900 on, my payments are $370 a month. Is there away to trade it in, pay off the balance and get a new car? Some people have told me to take it to a dealership and tell them the story and see if they would take it as a tarde in and put the previous balance tward another car. Is that possible? If so, where should I go and what kind of car should I get? Please keep in mind I have poor credit.

Answer 1

you might not want to hear this but everytime you buy/sell a car, you get slammed with mark ups and taxes and fees. you might be better off holding onto this vehicle for another year (it's at an age where it won't depreciate much) and then look around to trade it in. in one year you will owe $4k less on it and that will put you in a significantly better position.

or you can wait another year and a half and you will owe nothing on it and not have to worry about a monthly payment.

then, after paying it off and getting the title with a lean release, if you can suffer through the ownership of it for a few more years and save up the $370 per month (which is harder than it sounds) then you will not only have a car to trade in but also some $$ to make a good down payment and possibly buy a REALLY sweet ride.

i don't know you but chances are if you have bad credit then you probably aren't the type of person who is interested in what i just said.

Answer 2

You can definitely trade in your car for another one (the dealership will just LOVE you), but you need to be careful here. Depending on how bad your credit is, what kind of shape your vehicle is in, and how much money you want to put down, a car dealer will "place" you in a car that fits your needs (and makes them money).
What you need to be careful about is getting "upside down," which is exactly what you are proposing. The bottom line here is that you end up owing more money than the car is worth. This will get you in trouble quick. Your payments will probably be higher, and since you have bad credit, if you are late on your payments, it hurts you even worse.
My suggestion? If your van is still serviceable, keep driving it.Yes, it might not be exactly what you want, but at least you know what is wrong with it.
If it isn't serviceable, you have a whole new set of problems.

Answer 3

Unless you are upside down in your payments (which means you owe more than the car is worth) than most dealerships will let you trade the car in and pay it off for another from their lot. The payments may be higher especially with bad credit and the trade but most carlots will do just about anything to sell you a car.It can be done, just shop around for the best deal.

Answer 4

Sure, it's possible. Unfortunately, you owe way more than that trade-in value on that vehicle. Depending upon its condition the trade-in value is only around $2,000 at best. This is going to leave you in the position of having to roll nearly $5,000 in additional debt on top of the loan on the replacement vehicle.

You mentioned that you have poor credit. Doing that is going to leave you so far in the hole that you may never recover. The interest rate is going to be so high that with the added cost of a new car along with rolling over $5,000 on top of it your payments are probably going to double or more. Can you afford $700.00 a month for a car payment?

Answer 5

credit has nothing to do with it. the poor credit will just mean that your rate for the financing in the new car might be higher than most people. but yes, the money you owe right now in your recent car, once you trade it in to the newer car, the dealer finance officer can add whatever the balance will be after the rebates and asentive, to the new contract. then what the dealer does is send the balance owed to the old financial company.

Answer 6

Yeah, you just tell them you want to trade it in, they ask if you owe anything on it or you tell them, and they may pay off your old car and not bring the price down on the new one for the tradein. It's very common.

If you have poor credit, you should work on that before worrying about a new car.

Answer 7

the purely those that could want to commerce a vehicle are those which have adverse fairness (or maybe then it truly is a nasty theory) and those that do not care about the money. you should promote your vehicle to a private party, you receives more beneficial, and only repay the private loan with the proceeds from the sale so that you provides the identify to the customer. the extra 4k you've paid in the route of the mini isn't a credit, nor will it enable you to bypass funds. that funds has been utilized to the important of the private loan thereby lowering your payoff quantity.

Answer 8

Well it depends on the miles and nada. But they will add the remainder of the balance to the new car. The down side is that your credit will have to be good or they would have to find a car that will book out good enough to cover the neg. I can help if you live in oh. [e-mail]

Answer 9

Well.. you can do it.. I personally do not like to add debt onto debt but car dealers do it all the time.. They pay off the remaining part of the car and add it to your new monthly payments. NOW.. much would depend on just how much is left yet to be paid.

Answer 10

you can trade it, but you will not get payoff. they take the difference in actual market value and payoff and add to the amount financed on the car you buy because you are upside down in your payments

example: the car you want is $15000, your van is worth $5000
payoff on your van is $6900

6900-5000=1900
1900 is added to the price of the car you buy
15000+1900=16900, so you have to finance $16900