I was thinking about trading in my car...?

Question

I was thinking about trading in my car for a Jeep Wrangler, I have always wanted one, but I still owe 4,000 on my car loan. How would a trade in like that work? Would I just keep paying my bank, then get another loan and start paying it? Or would my loan transfer to the Jeep?

I have a 2003 mitsubishi lancer, in good shape, the Kelly Blue Book value on it is about 6,000

Answer 1

If you want to get the most ($6,000) for your current vehicle, sell it yourself. If you trade it in, expect to be offered $4-5 thousand for it. If you get more than you owe, the difference will be applied to your down payment. (ex. If you get $5000 and owe $4000 they would apply $1000 towards your down payment and pay off your loan with your current bank) When negotiating, let them know you still owe on your car but don't let them know how much, tell them "a lot"! If they won't give you more than you owe and tell you that you are "upside down" on your loan- walk out! If you take less than you owe as a trade in, they will make you pay off the balance or add it to your new loan. Not wise ! Good luck and don't buy the undercoating or rustproofing!

Answer 2

you are able to commerce it in devoid of down charge. they'll in basic terms roll all the unfavorable fairness into the different automobile and you would be so the different way up on it that it will take 7 or 8 yrs to pay it off and it could actual wiped out via then so which you will opt to roll it into yet another commerce with extra neg eq and be much extra the different way up till you owe like $40k on a $10k kia or something. if this is kinda small in basic terms make it paintings and positioned some extra thought into the subsequent one perchance. whilst youcontinual a automobile off the lot this is right away fairly worth 2 to 3k much less then minutes in the past and after a three hundred and sixty 5 days no telling how plenty fairness you have lost. on no account purchase NEW!! continuously purchase a three hundred and sixty 5 days or 3 old you will detect such superb bargains that way!!

Answer 3

If the Kelly Blue Book, using Trade-in value, says $6k and you only owe $4k, then you are good. Dealer should pay off your current vehicle when you sell it to them, and apply the balance of your trade in value to the new car purchase price.

Answer 4

It's called a flip flop, the loan Co. will pay off your vehicle and add the difference in what you owe and what you were given for a trade in to your new loan. This is common practice, however keep in mind what your difference is because you could end up owing more for your new car than it is worth.

Answer 5

The dealer you choose will buy your car, paying off your loan. If the trade-in value they give you is more than you owe they will deduct it from your purchase, if it is less they will add it to your purchase price. Good luck.

Answer 6

what kind of car do you have?
if it has a lot of value left, you shouldn't sell it, but if it's kind of junkie, then that's probibly a good choice, because the trade-in values are crappy and you don't get a good deal if you have a nice car and you trade it in.

Answer 7

you would trade in the car for the jeep.they would payoff the car.if you owed more on the car they would add it to the new loan.

Answer 8

They just roll your old payment into the new one. Be careful you do not bury yourself in negative equity.

Answer 9

sell it yourself they don't give you much by trading it in.you will get more by selling it.