say i brought a car for 15000, if in a years time i have paid 4536 usd on the car, when i go to trade in the car to get something else what do i owe? If the car is 15000 and the dealer gives me 12000 trade in value, do i owe the 3000 and interest on my current loan, or do i just get the 3000 taged on to the new payment for the new loan?
2006-10-27 06:22:46 · 3 answers · asked by byrdman26 1 in Cars & Transportation ➔ Buying & Selling
Call the place you got your original 15000 loan from. Ask them for a payoff quote. (The principal balance you own on the vehicle) Assuming no pre-payment penalties, most of the time there isn't one.
You will get the difference of 12,000 - the pay off quote back if the pay off quote is less than $12000. (if they tell you the payoff for the vehicle is 11500, it means you'll get 12000-11500 = 500 back )
Or you will owe the pay off quote - 12000 if what you owe in the payoff quote is greater than 12000. (if they tell you the payoff for the vehicle is 13000, it means you'll owe $13000-12000 = $1000) so $1000 will be added to your new loan.
It really depends on your original interest rate, because your 4536 includes payments towards both interest and principal.
The lower your original interest rate was, the more likely you'll be getting money back, the higher your original interest rate was, the less likely you'll get any money back, and you may even owe money.
2006-10-27 06:46:33 · answer #1 · answered by hsueh010 7 · 0⤊ 0⤋
I am a car salesman in Nashville, TN and at my dealership we payoff your trade.
2006-10-27 18:22:37 · answer #2 · answered by Likwid 1 · 0⤊ 0⤋
most dealers add to new car...
2006-10-27 15:08:15 · answer #3 · answered by cork 7 · 0⤊ 0⤋