Do dealerships roll over car loans?

Question

I was wondering how it works or if it's possible? Does anyone know what I'm talking about?

Answer 1

Dealers are happy to roll over old loans into new ones - and not tell you unless you ask. This is the #1 subject of lawsuits against car dealers in the U.S.. It's not illegal to roll over a loan, but it is if you are not told about it.

Rolling over loans is a bad habit that only gets you deeper into "upside down" trouble. Besides higher debt, one of the biggest problems comes if your car is destroyed or totaled in an accident. Your insurance only pays the "cash value" of the car, not what you owe on your "upside down" loan. The difference, which must come from your own pocket, could amount to thousands of dollars.

In summary, don't roll over loans unless it's only for a very small amount.

Answer 2

1

Answer 3

All that means is that you are still paying for your old car and your new one. If they roll over the loan, they make you pay for the part they won't give you in trade, so you're paying more for the car you're buying, they'll sell your trade for $3 to $5000 more than they'll give you for it, the bank will collect interest in the new loan for your previous loan and you will still be upside down (meaning you owe more than your car is worth). It's a scam.. and you still get to pay for it.....

Answer 4

Sure they do , but don't it will be the biggest mistake of your life. I don't know to many dealers that you can trust, the saleperson who I look out for most of them will tell you what you want to here and if you don't watch them they do what they want to, to make as much money as they can. Be sure you go over your contract, if you don't understand it. Call someone you trust to look over the contract before you sign it.

Answer 5

yes